India plans tariff migration for major ports
PORTS & SHIPPING

India plans tariff migration for major ports

The government is preparing a tariff migration system to grant pricing flexibility to existing private terminal operators at major ports. To safeguard the government's revenue, officials are considering implementing a minimum revenue commitment linked to the Wholesale Price Index. This measure aims to mitigate risks associated with private concessionaires offering lower tariffs to secure more cargo.

Private terminals at major ports have been operating under various fiscal regimes based on the year they received their concessions. These terminals collectively handle nearly half of the traffic at major ports across the country.

Sanjay Sethi, Chairman of the Jawaharlal Nehru Port Authority, leads the committee responsible for proposing a migration mechanism from the old tariff regimes to the new one for private terminals at major ports under the administrative control of the Central Government.

Previously, major ports charged different tariffs for consumers even within the same port due to varying contract terms with port authorities, regulated by the Tariff Authority for Major Ports (TAMP). With the Major Port Authorities Act, 2021 in place, TAMP was abolished, granting autonomy to each major port board to approve terminal rates on their premises. Disputes in this regard have been addressed under the Major Ports Adjudicatory Board Rules, 2023.

The new tariff regime, implemented in 2021, aimed to establish parity between private-sector ports and government port terminals. Under this regime, newly leased terminals through public-private partnerships (PPPs) were allowed to set their rates, subject to an agreed payment to the port authority. This flexibility was extended to all future PPP concessionaires, along with reduced royalties for trans-shipment and coastal cargo in new contracts.

The government is preparing a tariff migration system to grant pricing flexibility to existing private terminal operators at major ports. To safeguard the government's revenue, officials are considering implementing a minimum revenue commitment linked to the Wholesale Price Index. This measure aims to mitigate risks associated with private concessionaires offering lower tariffs to secure more cargo.Private terminals at major ports have been operating under various fiscal regimes based on the year they received their concessions. These terminals collectively handle nearly half of the traffic at major ports across the country.Sanjay Sethi, Chairman of the Jawaharlal Nehru Port Authority, leads the committee responsible for proposing a migration mechanism from the old tariff regimes to the new one for private terminals at major ports under the administrative control of the Central Government.Previously, major ports charged different tariffs for consumers even within the same port due to varying contract terms with port authorities, regulated by the Tariff Authority for Major Ports (TAMP). With the Major Port Authorities Act, 2021 in place, TAMP was abolished, granting autonomy to each major port board to approve terminal rates on their premises. Disputes in this regard have been addressed under the Major Ports Adjudicatory Board Rules, 2023.The new tariff regime, implemented in 2021, aimed to establish parity between private-sector ports and government port terminals. Under this regime, newly leased terminals through public-private partnerships (PPPs) were allowed to set their rates, subject to an agreed payment to the port authority. This flexibility was extended to all future PPP concessionaires, along with reduced royalties for trans-shipment and coastal cargo in new contracts.

Next Story
Infrastructure Urban

RITES Bags Rs 362 Million Order From DVC

RITES Limited, a Schedule 'A' enterprise under the Government of India, has announced that it has received a major domestic work order from the Damodar Valley Corporation (DVC). The company disclosed the development in a filing to the BSE and NSE dated 2 October 2025. The total contract value stands at Rs 362 million (excluding GST).Under the agreement, RITES will provide comprehensive services for the DVC Mejia Thermal Power Station. The scope of work includes the Annual Maintenance Contract (AMC) for Railway Sidings tracks, Operation and Maintenance (O&M) of Signalling and Telecommunicat..

Next Story
Infrastructure Urban

Greta Minerals Doubles WA Exploration Land, Targets Lithium Supply for India

Greta Minerals Pte, part of Singapore-based Greta Group, has expanded its exploration footprint in Western Australia to 1,550 sq km, up from 700 sq km acquired in 2024.Nitesh Chaudhari, Chairman of Greta Group, said, “We are very happy to expand our landholding, encouraged by initial results from Ultrafine+ soil sampling at Gecko North. The geological corridor appears promising for lithium, gold, and other critical minerals.”The Gecko North Project, 25 km northwest of Coolgardie, is one of seven critical mineral and gold projects under Greta Minerals (Australia) Pty, which now holds 37 gra..

Next Story
Infrastructure Urban

Vedanta Extends Demerger Deadline to March 2026 Amid Pending Approvals

Vedanta, led by Anil Agarwal, has extended the deadline for its corporate demerger to March 31, 2026, as approvals from the National Company Law Tribunal (NCLT) and relevant government authorities are still pending, the company said in a regulatory filing. The deadline had earlier been extended from March 31, 2025, to September 30, 2025.The board stated, “Given that the conditions precedent in the Scheme, including NCLT approval and approvals from certain government authorities, are still in process, the timeline for fulfilment of these conditions has been extended to March 31, 2026.” The ..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?