NEW DELHI: The Shipping Ministry has floated a proposal to sort out the
past surplus, worth over 2,500 crore, earned by some of the earliest
private cargo handling terminals at Major Port Trusts whose mandatory
rate revisions of every three years have been delayed by more than seven
years. This was due to court cases filed against tariff cuts ordered by
the port regulator.
The move comes after the Ministry issued new rate setting guidelines in March this year for terminals governed by the 2005 rate norms, rectifying many of the contentious issues that were at the centre of a confrontation between them, the Ministry and the Tariff Authority for Major Ports (TAMP).
The new rules, though, would be applied for future rate revisions of 14 older terminals such as the Nhava Sheva International Container Terminal (NSICT), Gateway Terminals India (GTI), Chennai International Terminals (CITPL), Chennai Container Terminal (CCTL), among others.
The new rate norms say that the surplus/ deficit over and above the admissible costs and permissible return, if any, arising during the period of litigation will be subject to the orders of the respective courts. “Alternatively, the Shipping Ministry, Major Port Trusts and BOT operators concerned and TAMP may decide on the treatment of past period surplus arising during the period of litigation,” it said.
The surplus, according to the Ministry’s proposal, will be worked out by scrutinising the audited accounts of the individual terminals since 2012, considering parameters such as actual revenue earned, less the operating expenditure, admissible royalty to be paid to the Government-owned port authority and 16 per cent return on capital employed (ROCE) on the net block of assets.
The move comes after the Ministry issued new rate setting guidelines in March this year for terminals governed by the 2005 rate norms, rectifying many of the contentious issues that were at the centre of a confrontation between them, the Ministry and the Tariff Authority for Major Ports (TAMP).
The new rules, though, would be applied for future rate revisions of 14 older terminals such as the Nhava Sheva International Container Terminal (NSICT), Gateway Terminals India (GTI), Chennai International Terminals (CITPL), Chennai Container Terminal (CCTL), among others.
The new rate norms say that the surplus/ deficit over and above the admissible costs and permissible return, if any, arising during the period of litigation will be subject to the orders of the respective courts. “Alternatively, the Shipping Ministry, Major Port Trusts and BOT operators concerned and TAMP may decide on the treatment of past period surplus arising during the period of litigation,” it said.
The surplus, according to the Ministry’s proposal, will be worked out by scrutinising the audited accounts of the individual terminals since 2012, considering parameters such as actual revenue earned, less the operating expenditure, admissible royalty to be paid to the Government-owned port authority and 16 per cent return on capital employed (ROCE) on the net block of assets.
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