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PORT Tariff Guidelines:

28th December, 2021 Economy

Figure 4: No Copyright Infringement Intended


  • Union Minister for Ports, Shipping & Waterways, Shri Sarbananda Sonowal has announced the Tariff Guidelines, 2021 for the PPP projects in Major Ports.


About the guidelines:

  • The Guidelines allow the concessionaires at Major Ports to set tariffs as per market dynamics.
  • The royalty payable for trans-shipment cargo will now be 1.0 times (from 1.5 times earlier) the normal container. 
  • Similarly, for the coastal cargo, the concessionaire has to pay only 40% of the royalty payable for foreign cargo (from 60% earlier) in accordance with coastal concession policy of the government. 
  • Concessionaire can be a person or company that has the right to sell a product or to run a business in PPP projects.
  • TAMP stands abolished according to the Major Port Authority Act, 2021.

Current practice:

  • Currently, Major Port’s PPP concessionaires handle around 50% of the total traffic handled by all the Major Ports in India. 

Benefits of the guidelines:

  • The biggest benefit of transition to market linked tariff is that a level playing field will be provided to the PPP concessionaires at Major Ports to compete with private ports.
  • these guidelines will usher in an era of market economy for the sector and go a long way in making the Major Ports competitive.
  • For transparency, the tariffs so fixed are to be hosted on the website of the concessionaire.


Major port Authority Act- 2021:

Key features:

  • The Bill proposes to create a Board of Major Port Authority, for each major port. 
  • These Boards will replace the existing Port Trusts under the 1963 Act, that are comprised of members appointed by the central government.


Adjudicatory Board:

  • The Bill proposes to constitute an Adjudicatory Board, to be appointed by the Central Government, to replace the existing Tariff Authority under the 1963 Act. It will consist of a Presiding Officer and two members.


Functions of Adjudicatory Board:

  • Certain functions being carried out by the Tariff Authority for Major Ports, 
  • adjudicating on disputes or claims related to rights and obligations of major ports and PPP concessionaires, and
  • reviewing stressed PPP projects.



  • Decentralise decision making and infuse professionalism in governance of major ports.
  • Impart faster and transparent decision making benefiting the stakeholders and better project execution capability.
  • Reorient the governance model in central ports to landlord port model in line with the successful global practice.