INDIA: DICHOTOMY EMBEDDED IN REFORMS

The new Act, it is suggested, gives them the autonomy they need to act more effectively to meet new market challenges and opportunities. This includes setting their own rates and charges, a function under the former act undertaken by the Tariff Authority for Major Ports (TAMP), a body which came in for its fair share of criticism.
So, seemingly a positive development for India’s Major Ports? Well of course it remains to be seen how each of the new Major Port Authority Boards performs – will they be able to operate with more laisse faire, will they be more transparent, act faster and more decisively? Time will be the major judge of this but already objections have been raised by the Opposition to the government who see the implementation of the new Act as a step on the way to port privatisations – or as put somewhat more crudely by one party, “… a law that will provide backdoor entry of crony capitalists into our ports.”
India’s other major port sector is what are known as minor ports, nearly 200 in number, presently under the jurisdiction of state governments or state maritime boards. Ironically, however, while the major ports are basically being decentralised the Draft Indian Ports Bill 2021 seeks to transform the central organ of the Maritime States Development Council from an advisory body to a body with powers to plan, develop and control minor ports, functions that have hitherto been practiced by state governments.
The irony is further compounded when it is appreciated that between 1993-94 and 2020-21, the cargo traffic of minor ports increased from 14 million tonnes to 575 million tonnes while that of the Major Ports increased from 179 million tonnes to 673 million tonnes. Or to put it more plainly, the minor ports share of cargo traffic cargo traffic went up from 8% to 46% in the period highlighting their strong performance compared to their Major Port counterparts.
Given this situation a move to a more central management appears to be highly questionable. Instead of fostering a tug of war between two different management approaches, central government may well be better advised to cultivate a level playing field across its port sector where the light touch of government is in evidence facilitating the pursuit of policies that are proven to generate positive results.