Top of the list of projects is a “reorganisation” of the port tariffs regulator TAMP (Tariff Authority for Major Ports), including assessing whether privately held non-major ports currently enjoy preferential treatment because the 12 major ports are hamstrung by tariff limits.
“In what exact form TAMP will be reorganised is being worked out,” said Director-General of Shipping (DGS) Gautam Chatterjee. “The new thinking is looking at it absolutely from scratch, and even the very need for TAMP.”
The shipping industry has been repeatedly demanding that TAMP be disbanded, saying that there is no level playing field between the major ports and the privately held non-major ones.
The previous UPA government had partially heeded the demands last July, when it allowed new projects coming up at major ports to set their own tariffs. However, the existing projects continue being under the older TAMP regime.
There have been allegations that private terminal operators at major ports have been diverting traffic to terminals they own and operate in non-major ports. Chatterjee felt that this was happening because tariffs at major ports only were being regulated – which was not desirable.
The shipping regulator declared that the government was also thinking of incentivising the shipbuilding industry through multiple interventions, including restoration of the 30% shipbuilding subsidy on vessels built for export, which was withdrawn in August 2007.
Also being considered is a provision for a percentage of compulsory local manufacturing in defence contracts, and mandatory ordering of certain types of vessels from domestic shipyards by state-run enterprises and the defence sector.
Chatterjee also mentioned that thought was being given to the setting up of a shipbuilding development fund to provide soft loans to shipowners, even as “serious consideration” was being given to conferring infrastructure status on the shipbuilding sector.
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