THE GIST of Editorial for UPSC Exams : 14 March 2020 (Major Port Authority Bill, 2020 (Mint))

Major Port Authority Bill, 2020 (Mint)

Mains Paper 2:Polity
Prelims level: Major Port Authority Bill 2020
Mains level: Significance of theMajor Port Authority Bill, 2020

Context:

• The Union Cabinet has cleared the Major Port Authority Bill, 2020 and it is expected to breathe new life into government-owned major ports.

Aim of the government:

• The Union government’s Sagarmala project (2015) was aimed at modernising major port infrastructure.
• Having invested in port ................................................

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Reasons behind to need regulations:

• Indian state-owned ports or major ports (12 in number) account for around 55% of maritime cargo traffic in the country.
• But, they still have to adhere to a tariff and policy regime that has its roots in the 1960s.
• The TAMP is the central authority that sets tariffs for the ports.
• It also holds the master key for many other operational and commercial matters. This is just a lot for it to deal.
• As a consequence, a substantial chunk of trade has shifted to the “non-major” or “private” ports.

The benefits of shifting to private ports:

• These ports operate under a much more liberal regime and are under the control of state governments.
• They are operationally more efficient and are crucially developed better linkages to the hinterland to enable smooth traffic flows.
• Currently, the private sector is involved in major ports in areas like cargo handling.
• Much more is needed by way of investment in areas such as dredging and adding new terminals.

What is the 2016 version?

• The latest Bill approved by the Cabinet is expected to be along the lines similar to the 2016 version of the Bill.
• The 2016 Bill granted major ..........................................................

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Way ahead:

• These measures could lead to major ports becoming more attractive to the private sector, both in terms of investment and as service providers.
• These reforms are critical if the investments made in the last few years are to pay off.
• The recent measures like the Sagarmala project, developing port-based SEZs, etc., gave a boost to the shipping sector.
• With the approval of the Port Authority Bill by the Parliament, a critical missing link will finally be in place.

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Prelims Questions:

Q.1)With reference to the India Data Portal (IDP), consider the following statements:
1. India Data Portal (IDP) incubated at ISB’s Bharti Institute of Public Policy is a platform that has data from multiple disciplines, subjects and areas.
2. In the first phase, the focus is on agriculture data.

Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2

Answer: .......................

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Mains Questions:
Q.1) Why Major Port Authority Bill is needed?What are the benefits of shifting to private ports?What is the importance of the Bill?