Central Port Authorities Act to replace Major Port Trust Act

New Delhi, June 10: To provide autonomy to India’s top 12 major ports, the government will replace the existing Act with a new legislation that will empower port authorities to lease land for its use for up to 40 years and for non-port related use to up to 20 years.

The ministry of shipping has prepared a draft Bill, the Central Port Authorities Act, 2016, to replace the Major Port Trust Act, 1963. The step is aimed at giving more autonomy and flexibility to the major ports and to bring in a professional approach in their governance. Under the Bill, the composition of the board has been simplified and it will comprise nine members includingthree to four independent members instead of 1719 under the port trust model, under the draft of the proposed legislation.

Provisions has been made for inclusion of three functional heads of major port as members in the board apart from a government nominee member and a labour nominee member.

The disqualification of the appointment of the members of the board, duties of the members and provision of the meetings of the board through video conferencing and other visual means have been introduced on the lines of Companies Act, 2013, the draft Bill says.

“Port related and non-port related use of land has been defined. A distinction has been made between these two usages in terms of approval of leases. The port authorities are empowered to lease land for port-related use for up to 40 years and for non-portrelated use up to 20 years beyond which the approval of the central government is required,” it added.

Besides, the need for government approvals for raising loans, appointment of consultants , execution of contracts and creation of service posts have been dispensed with.

The board of port authority have been delegated power to raise loans and issue security for the purpose of capital expenditure and working capital requirement.