6.7.6. Measures to improve Efficiency

The tariff guidelines were revised to provide flexibility to port operators to align the tariff closer to market tariff subject to achievement of certain performance standards. 100% FDI is being

allowed in PPP Projects in the Port Sector. The Model Concession Agreement is being amended so as to take care of the contingencies affecting the execution of PPP Projects. A new Major Ports Authority Act to replace existing Major Ports Act, 1963 to provide greater autonomy and modernization of institutional structure is under consideration. A new berthing policy and stevedoring policy has been formulated.

With a view to enable Major Ports to handle larger vessels the Ministry has prepared an action plan for increasing the draft in Major Ports. The outer harbor in Visakhapatnam Port has very deep draft of more than 18 mtrs. It is proposed to create a draft of more than 18 mtrs, in Mormugao Port, Kamarajar Port (Ennore).