Union Cabinet headed by PM Narendra Modi on 14th Dec 2016 approved the Major Port Trust Authorities Bill, 2016
The bill replaces Major Port Trusts Act, 1963.
Purpose of the legislation is to reform and enhance the efficiency of the major ports by providing greater autonomy and reforming the institutional structure.
The 2016 bill is more compact as compared to the Major Port Trusts Act 1963 as the number of sections were reduced from 134 to 65 by eliminating obsolete sections.
New bill has proposed a simplified composition of the Board of Port Authority. The bill lowered the number of board members from 17-19 to 11.
Boards of the Port Authority have been delegated full powers to enter into contracts, planning and development of ports.
The bill empowers the board to make its own master plan in respect of the area within the port limits.
It empowers the board to undertake construction of pipelines, telephones, communication towers, electricity supply and transmission equipment in port limits.
The board is empowered to lease land for port related use for 40 years and for any purpose specified in section 22 of the Act for up to 20 years.
Role of Tariff Authority for Major Ports has also been redefined.
As per the bill, the authority will be provided powers to fix tariff for purposes of bidding on PPP (public private partnership) projects.
Sagar Mala InitiativeThis bill is part of the GoI effort to further port led development under Sagar Mala initiative.
This project emphasizes:- Port modernization
- Port led industrialization
- Development of coastal communities.
