The Indian Ministry of Shipping has prepared a draft Bill “Major Port Authorities Act, 2016” to replace the age-old Major Port Trusts Act, 1963, with a view to promote port infrastructure and facilitate trade and commerce.

In the Bill, the government has proposed a significant overhaul of the functioning of 12 major ports in the country, which will give port boards more autonomy and flexibility along with a more professional approach to its governance.

Under the bill, the composition of a port board has been simplified and now it will consist of 10 members, including 3-4 independent members, instead of 17-19 under the present Port Trust Model. Moreover, provisions have been made to include government and labour nominee members too.

When implemented, it will replace more than the five-decade-old Major Port Trust Act 1963 and willenable port authorities to function like a corporate entity. Of the 12 ports, the Kamaraj Port Ltd has already been corporatised.

In future, operators of public-private partnership ports will be free to fix market-linked tariffs.

"Port related and non –port related use of land has been defined. A distinction has been made between these two usages in terms of approval of leases. The Port Authorities are empowered to lease land for Port related use for upto 40 years and for non-port related use upto 20 years beyond which the approval of the Central Government is required. For PPP projects the tenure of the lease of land would be as per the PPP policy of the Government," says a release from the government.

After the newly drafted Bill, the status of Port Authority will be deemed as ‘local authority’ under the provisions of the General Clauses Act, 1887, and other applicable statutes.

A draft of the bill has been uploaded at the Ministry’s web site with an invitation for comments.