Major Port Authorities Act, 2021 - Key Aspects and Significance

The Major Port Authorities Act, 2021, a significant legislative measure in India's maritime sector, was introduced in the Lok Sabha on March 12, 2020. It successfully passed the Lok Sabha on September 23, 2020, and the Rajya Sabha on February 10, 2021. After receiving the President’s assent on 17th February 2021, it officially replaced the Major Port Trusts Act, 1963.

The primary aim of the Major Port Authorities Act, 2021 is to regulate, operate, and plan the Major Ports in India . It entrusts the administration, control, and management of these ports to the Boards of Major Port Authorities. This Act also addresses various matters related to these authorities.

Candidates preparing for the upcoming IAS Exam should be well-versed with this Act and its objectives as they can expect related questions in General Studies Paper 2 and 3 of UPSC Mains. This article will delve into the key aspects, composition, powers, and significance of the Major Port Bill.

To kickstart your UPSC preparation, you may find the following links useful:

An Overview of the Major Port Authorities Act, 2021

The Bill was presented in both Houses of the Parliament by Shri Mansukh Mandaviya, the Minister of State (I/C) for Ports, Shipping &Waterways.

The Major Port Authorities Act 2021 was enacted after the Major Port Authorities Bill received the President's assent, replacing the previous Major Port Trusts Act, 1963.
A Board of Major Port Authority is to be established for each major port. These Boards will replace the existing Port Trusts under the 1963 Act, which consists of members appointed by the central government.
The Act is more streamlined in comparison to the Major Port Trusts Act, 1963, as the number of sections has been reduced from 134 to 76 by eliminating overlapping and obsolete Sections.

Ports Covered Under the Major Port Authorities Act, 2021

The Act applies to 12 major ports in India:

Deendayal (formerly known as Kandla)
Mumbai
JNPT
Mormugao
New Mangalore
Cochin
Chennai
Kamarajar (earlier known as Ennore)
V O Chidambarnar
Visakhapatnam
Paradip
Kolkata (including Haldia)

You may want to read more about the following major ports:

Chabahar Port	Gwadar Port
Jawaharlal Nehru Port (JNPT)	Hambantota Port

Aims & Objectives of the Act

The Major Port Authorities Act 2021 was introduced with the following objectives:

It aims to promote the expansion of port infrastructure and facilitate trade and commerce.
Its objective is to decentralize decision-making and to infuse professionalism in the governance of major ports.
The Act aims to reorient the governance model in central ports to landlord port model, aligning with successful global practices.
It imparts faster and transparent decision-making, benefiting the stakeholders and enhancing project execution capability.

Composition and Powers of the Board of Major Port Authority

The new Act proposes a simplified composition of the Board of Port Authority, reducing the number of members from 17-19 to 11-13. These members represent various interests.
The Act includes provisions for the representation of:
- The State Government in which the Major Port is situated.
- Ministry of Railways.
- Ministry of Defence and Customs.
- Department of Revenue.
- A Government Nominee Member.
- A member representing the employees of the Major Port Authority.
The Act also proposes the creation of an Adjudicatory Board. This board will carry out the residual function of the erstwhile TAMP for Major Ports, look into disputes between ports and Public-Private Partnerships (PPP) concessionaires, review stressed PPP projects, and suggest measures to review and revive such projects.

Recently, the global trade through waterways faced a significant economic setback when a 20,000 TEU container ship, Ever Given, blocked the Suez Canal.

Aspirants preparing for upcoming government exams can read about the Suez Canal Blockage 2021 at the linked article.

Powers of the Major Port Authorities

The Act empowers the Board to use its property, assets, and funds as it deems fit for the development of the major port.
The Board can also make rules on:
- Declaring the availability of port assets for port-related activities and services.
- Developing infrastructure facilities such as setting up new ports, jetties.
- Providing exemption or remission from payment of any charges on any goods or vessels.
The role of the Tariff Authority for Major Ports (TAMP) has been redefined. The Port Authority now has the power to fix a tariff that will act as a reference tariff for purposes of bidding for PPP projects. PPP operators will be free to fix tariff based on market conditions.
Under the Act, to meet its capital and working expenditure requirements, the Board may raise loans from any:
- Scheduled bank or financial institution within India.
- Any financial institution outside India that is compliant with all the laws.

Significance of the Major Port Authorities Act, 2021

The Major Port Authorities Act, 2021 aligns with the Prime Minister’s Atmanirbhar Bharat Campaign . It is expected to help India become a global hub for manufacturing and trading.
The Act aims to facilitate faster and transparent decision-making, benefiting stakeholders and enhancing the project execution capability.
The Act reorients the governance model in central ports to the landlord port model, aligning with successful global practices.

Despite its many advantages, the Major Port Authorities Bill 2020 faced criticism. The Rajya Sabha passed the Bill with 84 votes in favour and 44 against. Critics argued that it aims to privatise Indian ports and dilute the powers of the states on land use.

For a comprehensive list of all important acts in India , visit the linked article.

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