Regulatory Framework Needed to Whet Investor Appetite: India's Ports & Logistics

September 24, 2020Infrastructure
India’s existing regulatory framework has separated out tariff regulation for major ports, while other functions remain with the Central Ministry, Port Trusts and State Governments. Tariff determination for major ports has been a challenge for the past 15 years.
 
The probability of monopoly pricing has been substantially reduced with the significant addition of capacity, particularly in non-major ports, whose tariffs are not yet regulated.
 
This has caused the Tariff Authority for Major Ports (TAMP) to constantly evolve its tariff determination framework. The proposed 2020 Major Port Authorities Bill (MPA Bill) is a move towards transferring tariff determination responsibility back to the Port Trusts.
A more pressing matter is whether there is a need for a greater encompassing sector regulation in ports.
 
To develop a port sector that is relevant to global trade, India needs to aggregate international cargo at high-potential ports and prioritize high-speed hinterland connectivity to these gateway locations with several additional ports acting as feeders into these ports.
 
With this background, the eMeeting organized by GRI Club identified three key themes for improving the port sector’s regulatory framework and making it better aligned with investor appetite.