Indian Ports Bill 2021

Subject – Economy

Context – Ports Bill is raising States’ hackles

Concept –

The Indian Ports Bill 2021 seeks to replace more than a century old Indian Ports Act 1908.
The new Bill incorporates a number of international regulatory developments in the national legislation namely the “International Ship and Port Facility Security (ISPS) Code 2004, the International Convention for the prevention of pollution from ships (MARPOL) – (1983, 2005).
It mandates port authorities to provide adequate “reception facilities” to ships to dispose of their waste.
The International Ballast Water Management (BWM) convention (2017) aims at preventing the spread of invasive aquatic species and potentially harmful pathogens in ships’ ballast water when it is released into port premises or adjacent environment.
The draft Bill under Chapter IX contains provisions for safety and security of ports and Chapter X for prevention and containment of pollution at ports and these provisions will apply to all ports in India — major and non-major and they are required to prepare a “Security Plan” and a waste reception and handling plan and will be subject to periodic audit by the Union government to ensure compliance.

The controversial provisions

Chapter II deals with establishment of a Maritime State Development Council by the Centre with the Union Minister as the Chairperson and Ministers in charge of ports in the Maritime States as members. It also includes the Secretary and Joint Secretaries of the Ministry dealing with ports.
- Surprisingly, neither the State Maritime Boards nor expert members on port administration and trade interests find a place in the Council.
- It also proposes to make this Council a permanent body with wide-ranging powers to formulate a national plan for development of existing and new ports and to revise the plan periodically, monitor the development of major and non-major ports to ensure integrated development of major and non-major ports with the national plan.
Section 17, Chapter IV empowers the Union government to make a port non-operational if it is not in consonance with the national plan.
- Chapter XII, section 83 proposes heavy penalties for administrative lapses on Port authorities and officials ranging from ₹50,000 to ₹2 lakh or imprisonment up to six months or both.
- This excessive authority and power concentrated in the Union government relegating the maritime States into secondary position have led to the maritime States — Tamil Nadu, Kerala, Andhra Pradesh, Odisha and Maharashtra to lodge their protest and convey their objections to the Centre.

Indian Ports –

India has 12 major ports and about 212 non-major ports.
Major ports come under the direct control of the Centre while all non-major ports come under the control of respective State governments.
In 2000-01 Indian ports handled a total traffic of 369 million tonnes (major 281 and non-major 88) and the share of major ports was 76 per cent and that of non-major ports 24 per cent.
There is every reason to believe that by 2030 nonmajor ports in India will overtake the major ports in cargo handling and the maritime State governments will be the main driving force to effect such developments.
The British Government in 1962 appointed Lord Rochdale as Chairman of a Committee to study the organisation of ports and the committee recommended establishment of a National Ports Authority for British ports.
- The British government did not accept this recommendation but felt that ports should be left to the respective local authorities for development with local initiative.

To know about The Major Port Authorities Act 2020, please click here.