MAJOR PORT AUTHORITIES BILL 2020.
                     MAJOR PORT AUTHORITIES BILL 2020
INTRODUCTION
• The Major Port Authorities Bill, 2020 was 
introduced in Lok Sabha by the Ministry of 
Shipping.
• The Bill aims to replace the Major Port Trusts Act, 
1963.
Source: www.civilsdaily.com/
WHAT IS THE BILL ABOUT?
• The Bill seeks to provide for regulation, 
operation and planning of major ports in 
India and provide greater autonomy to these 
ports.  
Source: Business World
APPLICATION
• The Bill will apply to the major ports of Chennai, 
Cochin, Jawaharlal Nehru Port, Kandla, Kolkata, 
Mumbai, New Mangalore, Mormugao, Paradip, 
V.O. Chidambaranar, and Vishakhapatnam.
Source: www.civilsdaily.com/
MAJOR PORT AUTHORITIES BOARD
• Under the 1963 Act, all major ports are managed 
by the respective Board of Port Trusts that have 
members appointed by the central government.  
• The Bill provides for the creation of a Board of 
Major Port Authority for each major port.  These 
Boards will replace the existing Port Trusts. 
Source: SCC online
COMPOSITION OF BOARD
• The Board will comprise of a Chairperson and a 
deputy Chairperson, both of whom will be 
appointed by the central government on the 
recommendation of a selection committee.   
Further, it will include one member each from 
– the respective state governments
– the Railways Ministry
– the Defense Ministry
– the Customs Department.  
Source: www.civilsdaily.com/
POWERS OF THE BOARD
• The Bill allows the Board to use its property, assets 
and funds as deemed fit for the development of the 
major port.  
• The Board can also make rules on:
– declaring availability of port assets for port 
related activities and services
– developing infrastructure facilities such as 
setting up new ports, jetties
– providing exemption or remission from payment 
of any charges on any goods or vessels.
Source: Marine Insight
FIXING OF RATES
• Under the Bill, the Board or committees 
appointed by the Board will determine these 
rates.  
• They may determine rates for:
– services that will be performed at ports
– the access to and usage of the port assets, 
– different classes of goods and vessels, 
among others.  
Source: www.prsindia.org/
FINANCIAL POWERS OF THE BOARD
• Under the Bill, to meet its capital and working 
expenditure requirements, the Board may raise 
loans from any:
– scheduled bank or financial institution 
within India
– any financial institution outside India that is 
compliant with all the laws.  
However, for loans above 50% of its capital 
reserves, the Board will require prior sanction 
of the central government.  
Source: Business Standard
CORPORATE SOCIAL RESPONSIBILITY
• The Bill provides that the Board may use its 
funds for providing social benefits.   
• This includes development of infrastructure in 
areas such as education, health, housing, and 
skill development.   
Source: www.prsindia.org/
SIGNIFICANCE OF THE BILL
• Privatized 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.
• The bill aims at decentralizing decision making 
and to infuse professionalism in governance of 
major ports.
Source: www.prsindia.org/