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Main Features of Tariff Guidelines for Projects at Major Ports

The new guidelines for determination of tariff for projects and major ports come into force with immediate effect.  The Tariff Guidelines will have prospective effect. The projects already awarded will not be covered under the new guidelines.

  • 2005 and 2008 guidelines shall continue to apply to projects bid under them.
  • Tariff Authority for Major Ports, TAMP will first set the Reference Tariff for a particular commodity  at a major port. Such Reference Tariff will typically be the highest prevailing rate that was set on the basis of guidelines framed in 2008 for handling a particular commodity in a port.
  • If that commodity is not handled at that Port, highest tariff in nearest Major Port shall be taken as Reference Tariff.
  • Reference Tariff so set, shall be applicable for 5 years. It will be indexed to inflation up to 60 of Wholesale Price Index.
  • TAMP will also notify Performance Standards of facilities and services offered at the port project
  • Both the Reference Tariff and Performance Standards shall be mentioned in the bid document and the bids will be evaluated on the basis of Reference Tariff.
  • Indexed Reference Tariff would be the ceiling tariff in the first year of operation
  • Operator shall be free to propose tariff higher than indexed Reference Tariff from the second year subject to Tariff Cap of 15% over and above the indexed Reference Tariff.
  • Upward revision will be allowed only once in Financial Year
  • Proposal for increase in tariff should be sent to TAMP, stating achievements in Performance Standards in the previous year.  These should be certified by an Independent Engineer drawn from an approved panel.
  • If Performance Standards as per the Concessionaire Agreement are not achieved, TAMP shall not consider any hike in traffic.
  • Revenue Sharing will be as per the Concession Agreement.
  • Major Port Trusts shall draw Performance Standards for the new berths, comparable to similar PPP berths.
  • If PPP operator fails to achieve Performance Standards the stakeholder can make a representation to TAMP.
  • TAMP will hold an inquiry and give its findings to the Major Port Trust
  • Major Port Trust will be bound to take action on the findings as per Concession Agreement

Tags: G.K. VasanIndiaPPPPurchasing power parityTAMPTariffTariff Authority for Major PortsWholesale price index

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eMinds Legal is a Corporate Law Firm based in Gurgaon, India specializing in Corporate Legal, Corporate Secretarial and Compliance. The Firm comprises of a team of Corporate Lawyers and Company Secretaries with in-depth subject matter knowledge and participative industry experience of over 15 years.

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