Ministry, Plan panel split over model port agreement

NEW DELHI: The model concession agreement (MCA) for the port sector is likely to be delayed due to disagreement between the ministry of shipping and the Planning Commission over issues like concession period, tariff fixation and appointment of independent engineers.

The shipping ministry is against the Planning Commission approach to compare the port sector with the road sector. The Planning Commission is in favour of fixing concession period on the basis of traffic volume, like in the road sector. “Ports and roads are not same, they are not comparable. The issue in ports is not that of traffic but cargo,” a source in the shipping ministry said. The two agencies are preparing two different draft MCAs for the consideration of an inter-ministerial group (IMG).

The two agencies also differ on the principle of tariff setting. The Planning Commission is favouring that tariff should be fixed for a period of 30 years, linked to the price index. As of now, the Tariff Authority for Major Ports (TAMP) fixes tariff every three years.

The shipping ministry is, however, having a different view. “Fixing tariff for a period as long as 30 years is not the solution. Tariff should not be uniform for such a long period. There should be a tariff range which could be decided,” sources in the ministry said.