This article on ‘Indian Ports Bill 2022‘ was written by Anam Sheikh an intern at Legal Upanishad.
Introduction
India has a 7,500-kilometre-long coastline, 14,500-kilometer-long potentially navigable waterways, and a strategic location along vital international marine commerce routes. Maritime transport, enabled by ports, accounts for around 95% of India’s commerce by volume and 65% by value. Several efforts on port-led development have been identified and started under the Ministry of Ports, Shipping, and Waterways’ Sagarmala programme. The continuous advances and committed (public and private) investments in ports require scientific and consultative planning, with sharp attention to ever-increasing safety, security, and environmental challenges.
What is India’s last legislative framework for ports?
Approximately 95% of India’s trade by volume and 68% by value is transported by sea transport, which is assisted by 212 ports (12 major and 200 small ports) along its 7,517 km coastline.
While the Ministry of Shipping has administrative responsibility over the main ports, the non-major ports are under the jurisdiction of their respective State Maritime Boards/State Governments.
The Main Port Trusts Act of 1963 governs the major ports. All non-major ports (minor ports) are managed by the Indian Ports Act of 1908, which governs vessel berths, stations, anchoring, fastening, mooring, and unmooring.
What is the purpose of the new Indian Ports Bill 2022?
The draught Indian Ports Bill 2022 proposes to repeal and replace the Indian Ports Act of 1908.
“The Indian Ports Act of 1908 has been in effect for over 110 years.” The Act must be updated to reflect current frameworks, embrace India’s international commitments, handle rising environmental issues, and help in the consultative growth of the ports sector in the national interest, according to the Ministry of Ports, Shipping, and Waterways.
The Ministry sent three previous draughts of the Bill to a variety of interested parties, including major ports, state governments, state maritime boards, and various central government ministries. All of the feedback submitted has been taken into consideration while creating the draught Indian Ports Bill for 2022.
According to Shri Sarbananda Sonowal, Union Minister for Ports, Shipping, and Waterways, this law would serve to boost player confidence, which will increase participation and foster healthy competition in the maritime industry. According to him, this will result in increased economic activity, larger markets, and a considerable rise in related employment opportunities, enabling the realization of the prime minister’s vision for Atmanirbhar Bharat.
Indian Ports Bill’s Major Provisions
Repeal of the Indian Ports Act of 1908.
The proposed measure will repeal and replace the existing Indian Ports Act of 1908.
State Maritime Commissions
It would empower and establish State Maritime Boards to ensure effective administration and will integrate them into the national framework.
Observance of maritime treaties
The law would seek to prevent and limit pollution at ports, as well as to guarantee compliance with India’s obligations under marine treaties and international instruments to which it is a party.
Ports of little importance
The bill would include provisions for the control and administration of India’s non-major ports.
Mechanisms for adjudication and reparation
It will establish a national council to support organized growth and development of the port industry, as well as adjudicatory methods for resolving port-related conflicts.
Penalties
Existing outmoded penalties in the Act have been amended in terms of amounts and crimes applicable to current conditions.
What are the proposed bill’s main goals?
- To promote integrated planning between inter-state and center-state cooperation through a completely consultative and advisory framework.
- To implement pollution prevention measures for all Indian ports while taking into account India’s international treaty responsibilities.
- To fill gaps in the dispute resolution system necessary for the booming ports industry.
- Transparency and collaboration in the development and other areas may be achieved via the use of data.
The proposed measure will homogenize and streamline the marine sector’s development while also boosting the ease of doing business by removing needless delays, conflicts, and outlining duties. The national framework will include State Maritime Boards. Furthermore, the Maritime State Development Council would ensure cooperative federalism, in which the Centre and State/UT Governments will collaborate to develop a progressive road map for the country. The Act’s superfluous provisions have been removed or replaced with contemporaneous legislation. Furthermore, outmoded penalties in the Act have been amended in terms of amounts and crimes relevant to the current reality.
The Ministry sent three previous draughts of the Bill to a variety of interested parties, including major ports, state governments, state maritime boards, and different central government agencies. All of the feedback submitted has been taken into consideration while creating the draught Indian Ports Bill for 2022.
According to Shri Sarbananda Sonowal, Union Minister for Ports, Shipping, and Waterways, this law would serve to boost player confidence, which will increase participation and foster healthy competition in the maritime industry. According to him, this will result in increased economic activity, larger markets, and a considerable rise in related employment opportunities, enabling the realization of the prime minister’s vision for Atmanirbhar Bharat.
The suggested adjudicatory system is objectionable for what reason?
The proposed amendment to the 1908 legislation establishes a new process for resolving disputes. The proposed law would transform the Adjudicatory Board—which oversees 11 of the 12 ports controlled by the Centre and was established under section 54 of the Major Port Authorities Act of 2021—into an appellate tribunal with the authority to hear appeals.
The Appellate Tribunal will adjudicate any dispute between two or more ports, where at least one port is not under the jurisdiction of the same State, between two or more State Maritime Boards, or between one or more major ports and one or more non-major ports. It will also hear appeals against any direction or order of the State Maritime Boards.
The Appellate Tribunal will have civil court-like authority, and the Supreme Court will be the sole court to which an appeal against its ruling may be made.
Conclusion
In order to guarantee compliance with the nation’s obligations under the marine treaties and international instruments to which India is a party, the draught has been created to consolidate and alter the laws pertaining to ports, for the prevention and control of pollution at ports.
Additionally, it includes provisions for port preservation, the empowerment and establishment of State Maritime Boards for the efficient administration, control, and management of India’s non-major ports, the establishment of adjudicating bodies for port-related disputes, a national council for promoting organized growth and development of the port sector, and the best possible utilization of India’s coastline.
References
- THE INDIAN PORTS ACT, 1908
- The Draft Indian Ports Bill, 2022
- “Draft Indian Ports Bill, 2022”, Drishti IAS, 19 August 2022, available at: https://www.drishtiias.com/daily-updates/daily-news-analysis/draft-indian-ports-bill-2022
- “Revised Draft Indian Ports Bill 2022 will stifle state-specific initiatives: TN CM”, Hindustan Times, 23 September 20200, available at: https://www.hindustantimes.com/india-news/revised-draft-indian-ports-bill-2022-will-stifle-state-specific-initiatives-tn-cm-101663872015649.html