TARIFF AUTHORITY FOR MAJOR PORTS

NOTIFICATION

New Delhi, the 28th November, 2001

No. TAMP/103/2001-CPT.—In exercise of the powers conferred by Section 49 of the Major Port Trusts Act, 1963

(3 8 of 1963) the Tariff Authority for Major Ports hereby approves the proposal of the Calcutta Port Trost for extension of

the validity of the existing schedule of rates for the lands and buildings of the Calcutta Port Trust atHaldia as m the Order

appended hereto.

SCHEDULE

Case Mo.TAMP/103/2001-CPT

The Calcutta Port Trust (CPT)

- - -

Applicant

(Passed on this 22nd day of November 2001)

This Authority had pawed on Order on 20 October 1999 revising

the rates of rent for land and buildings of the Calcutta Port Trust (CPT) at

HaWia. The Order was notified in the Gazette of India on 2 December 1999.

The revised rates of rent for the lands and buildings of the CPT at HakJia were

approved as an interim arrangement for two years pending receipt of certain

Information from the CPT on the points Indicated In the Order. The validity of

the revised rate of rent will, therefore, expire on 1 December 2001.

2.1.

The CPT has now proposed to continue with the existing

schedule of rents for the lands and buildings of the CPT at Haldia for a further

period of one year from 2 December 2001.

2.2.

The CPT has made the following points In support of to proposal:

THE GAZETTE OF INDIA; EXTRAORDINARY

(PAKTID—SEC. 41

(I).

The CPT has 6300 acres of land for the dock system as wen as

for the port based Industries / storages and other associated

facilities.

The Land Management Policy is primarily oriented

towards creation of port based and port related facilities which In

turn forms a dedicated cargo base for the port The port also

allots land for providing associated infrastructure like school,

college, roads, water supply, market complex, garage, petrol

pump, hotel, etc., to ensure a sustained growth of Industrial and

economic activities on port owned land.

(ii).

Land Management Policy Including the existing Rent Structures

approved by the Authority have been found to be working well in

attracting port based investment creation of cargo storage

facilities, etc., on port owned land which in turn is increasing its

cargo volume as well as capacity utilisation and profitability.

(ill).

Any upward revision of the existing Rent Structures at this point of

time may be detrimental to the interests of the port to exploit Hs

land infrastructure for generating additional traffic through setting

up of port related activities and facilities. This is more so because

at this juncture, the port is striving hard to attract additional traffic

by rationalising its tariff structure in the face of stiff competition

being faced from other neighbouring ports including the emerging

private port In the vicinity of Haldia and the land rent Is playing a

vital role in deciding the overall port cost to the trade.

(iv).

Further enhancement in rent may also Invite objections /

resistance from the existing lessees / licensees who only 2 years

back have adjusted themselves to the enhanced rate of rent for

carrying out their activities.

(v).

The Haldla Development Authority and Haldta Municipality are

also allotting land adjoining to port owned land at Haldia for

Industrial and storage purpose at a lower rate of rent This also

points towards a fact that in case of increase in the scheduled

rent, the port may suffer in adding to its land revenue through

fresh allotment

(vi).

The required details as sought for by the Authority in its Order

dated 29 October 1099 are being worked out by the CPT and the

same would be furnished in due course.

Since collection of the requisite Information from the CPT would

have delayed further consideration of the case, this Authority approved the

revision as an interim arrangement for two years pending receipt of information

from the CPT.

The CPT has now sought extension of th« existing rent

schedule for lands and buildings at Haldia for a further period of one year

mainly on the ground that any upward revision of the existing rent structure at

this point of time may be detrimental to the interest of the port to exploit its land

Infrastructure for generating additional traffic through setting up of port related

activities and facilities. In addition, the CPT has also stated that the required

details as sought for in the Order of this Authority dated 29 October 1999 are

being worked out and the same will be furnished in due course. Implied in this

request of the CPT to the apprehension that the rates may go up further »f the

lease rentals are recalculated as per the methodology suggested. And. for the

stated reasons, the CPT does not want to burden the users with another Nice In

rates within a span of two years and Jeopardise the growth In traffic. This being

the commercial judgement of the CPT, this Authority does not have any

objection to accept the request of the CPT to continue with the Interim

arrangement for one more year.

In the result, and for the reasons given above, this Authority

decides to extend the validity of the existing schedule of rate of land and

buildings of the CPT at Haldla for a further period of one year with effect from 2

December 2001.

S. SATHYAM, Chairman

[ADVT/m/lV/143/2001/Exty.]

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