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Context:The Indian Ports Association (IPA) has appointed M/s Tech Mahindra as the Managed Service Provider for the five major ports at Mumbai ,Kolkata, Chennai, Deendayal Port and Paradip Port Trust.
Ports in India- A snapshot
There are 13 major ports in the country; 6 on the Eastern coast and 6 on the Western coast. Further there are about 200 non-major ports. The 12 major ports in the country have a combined total capacity of 1,065 million metric tonnes (MMT), while the capacity at non-major ports is roughly 700MMT.
Ports’ Performance
Capacity:Capacity at major ports grew to 1,065 MMT in FY17, implying a CAGR of 7.75 per cent since FY07 Cargo Capacity: In FY17, cargo capacity in India is estimated to have increased to 2,493.1 MMT from 1,806.8 MMT in FY15. Cargo Traffic: In FY18, major ports in India handled 679.36 MMT of cargo traffic, showing a CAGR of 2.73 per cent during FY08-18. Turnaround Time: The average turnaround time of major ports improved to 3.44 days in FY17 from 4.01 days in FY15 (Turnaround time is the total time spent by a ship from entry into port till departure) During FY17 major and non-major ports handled total throughput of around 1,133.09 Million Tonnes (MT), an increase of 5.7 per cent from FY16. For the year 2016-17, the total merchandize trade in volume terms was 1,132.2 million tonnes, 5.5% growth over 2015- 16.
Regulatory Scenario of ports in India
The Major Ports Authorities Bill , 2016:
The Act seeks to provide greater autonomy and flexibility to major ports. It repeals the Major Port Trusts Act, 1963. The key features of the Bill include:
The Bill provides for the central government to create an Adjudicatory Board. Functions include:
The programme aims to modernize India’s ports so that port-led development can be augmented and coastlines can be developed to contribute in India’s growth. Major components of the project include:
National Maritime Agenda, 2010-2020: The major objectives include:
High turnaround times
Inadequate infrastructureand Technology Issues
Issues with Regulations:
The major problem with regulation is that major and non-major ports fall under different jurisdictions. Further, the regulatory framework is rigid. Cabotage laws in India continued to remain restrictive. Foreign-flagged vessels are not allowed to ship cargo from one Indian port to another as that remains a protected turf for domestic shippers.Land acquisition and environmental clearances are some specific challenges for non-major ports.
Issues with PPP Model:
Most port PPPs impose strict limits on what private operators are allowed to do, usually in terms of the types of cargo they are allowed to handle. Until recently, Other problems were related to tariff regulation and absence of dispute resolution mechnaism Discriminatory provisions for Indian vessels: Foreign vessels are exempt from duty on bunker fuel while Indian vessels have to pay this duty Seafarers aboard Indian flag vessels are subject to Indian income tax while those working aboard foreign vessels are not subject to this tax.
Environmental impact:
During the operation of ports, spillage or leakages from the loading and unloading of cargo and pollution from oil spills are common due to poor adherence to environmental laws and standards. The water discharged during the cleaning of a ship and the discharge of ballast water is a threat to marine ecosystems Dredging causes environmental problems (increased sedimentation) affecting local productivity of the local waters and its fisheries.
Social impacts of Port Development:
Most port projects and development results in displacement (such as Gangavaram Port in Andhra and Mundra in Gujarat). Besides displacement, the other important concern expressed by fishing communities is the restriction of access to fishing grounds around a port. Manpower and Labour Issues:Lack of adequate training, falling manpower quality, opposition to reform are major issues Unhealthy Competition:Analysists have cited the concerns over development of multiple ports in close vicinity handling similar cargo as it might lead to ports competing for the same cargo arrivals.
Way Forward:
By: Priyank Kishore ProfileResourcesReport error
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