The Hindu Business Line : Levy charges at ports arbitrary: Essar chief

MR Shashi Ruia, Chairman, Essar group, on Wednesday called for "least interference" from the Central and State Governments in providing services at the major and non-major ports in the country.

Stating that increased mechanisation at ports could bring down the transportation costs, Mr Ruia, however, said that the Major Port Trusts Act, 1963, enabled the Union Government-owned major port trusts and the Indian Ports Act, 1908 allowed the State-government-controlled minor ports to levy charges for "doing nothing."

Essar is currently paying Rs 72 per tonne to the Visakhapatnam Port Trust for shipping iron ore. Besides, a notification issued by the Gujarat Government enabled the Gujarat Maritime Board (GMB) to charge Rs 100 per tonne from Essar for handling iron ore at one of the minor ports.

"GMB is milking the local manufacturers by collecting the levies and cess which they are not entitled to collect. This kind of charges upsets the investment decisions and is not in the best interests of the country," Mr Ruia stated at the Indo-US Summit on infrastructure here.

The Essar Chairman lamented the absence of a regulatory mechanism that could control this kind of levies that are inflicted on the industry. "The only option is to approach the courts for redressal. But, this by no means is easy given the judicial system prevailing in the country," he noted.

While fully supporting Mr Ruia's stand for least interference by the Centre and State Governments for providing services at ports, the Shipping Secretary, Mr D.T. Joseph, however, said that a solution in this regard would necessitate an amendment to the Constitution.

"But, given the political climate prevailing in the country, it is not conducive to amend the Constitution to extend the jurisdiction of the Central Government over minor ports," he stated.

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