The new port tariff norms, introduced by the shipping ministry, would be applicable to the 330-metre container berth project at the Jawaharlal Nehru Port Trust (JNPT) if the award of contract were to be cancelled for any reason and bids re-invited for the same project next fiscal.
DP World emerged the successful bidder for the project and received a letter of award from JN Port for developing the berth in early December 2012. The firm planned to invest $200 million on the project.
Even though DP World was awarded the contract, the company wants its newly set up holding company Hindustan Ports (HPPL) to sign the allowance contract.
The union shipping ministry has sought the Law Ministry’s view on whether it can allow HPPL to sign the allowance contract. Shipping ministry seeks clarification on whether a different legal entity can be allowed to expand the project. An approval would be necessary because HPPL is a different legal entity than what had bid for the project.
In case the law ministry opines that HPPL cannot sign the allowance contract and JNPT invites re-bidding for the contract, then the project would attract the new port tariff norms.
With effect from April 1, the shipping ministry introduced a set of new tariff norms for major ports, which will allow developers to fix port tariffs higher than what is recommended by the port tariff regulator - Tariff Authority of Major Ports (TAMP).
The new strategy will be implemented for those projects whose financial bidding takes place next financial.