The Indian Parliament recently passed the Major Port Authorities Act, 2021, to regulate and control the operation and planning of major ports in India. The legislation provides control of these ports to the boards of major port authorities and addresses any related or incidental matters concerning the major ports. The 2021 Act replaces the Major Port Trusts Act, 1963, and aims to promote the strengthening of port infrastructure, increase trade and commerce, and ensure decentralised decision-making.
The Need for Modernization
The Major Port Trusts Act, 1963, had become outdated and was in need of modernization. The new legislation seeks to address this by shifting the governance model of central ports to a landlord port model, which is regarded as a global best practice. This model provides control, administration, and management power to the boards of major port authorities, and allows for decentralised decision-making.
The landlord port model has been successful in many countries around the world and has been found to be more efficient and effective in promoting the strengthening of port infrastructure, increasing trade and commerce, and ensuring decentralised decision-making. The new legislation seeks to introduce these best practices in India.
Key Provisions of the Act
The Major Port Authorities Act, 2021, provides for the establishment of major port authorities for each major port, which will be responsible for the control, administration, and management of the port. The act also provides for the appointment of a chairman and other members of the board of major port authorities, and outlines their powers, duties, and responsibilities.
The act also provides for the transfer of assets, liabilities, and employees of the existing major port trusts to the major port authorities. It also outlines the procedures for the settlement of any disputes between the major port authorities and the central government or state government, and provides for the appointment of an appellate tribunal to hear and decide any such disputes.
Benefits of the New Legislation
The Major Port Authorities Act, 2021, is expected to bring several benefits to the Indian ports sector. The decentralisation of decision-making power to the boards of major port authorities is expected to lead to more efficient and effective port administration, and promote the strengthening of port infrastructure.
In addition, the transfer of assets, liabilities, and employees from the existing major port trusts to the major port authorities is expected to bring greater transparency and accountability to the sector. This will help to increase trade and commerce, and promote economic growth in the region.
