Government Blocks Single Company from Achieving Monopoly in Ports

The Indian government’s Maritime India Vision 2047 aims to develop next-generation ports and increase port handling capacity by 400%. However, the vision document also proposes restrictions on mergers and acquisitions that could lead to a particular group of companies dominating the port sector. This comes amidst allegations of attempts by some players to gain an advantage in a sector that is expected to attract significant private sector investment.

The government plans to hold meetings with State Maritime Boards to discuss the issue and expects these boards to issue policies or guidelines to limit mergers and acquisitions beyond a certain threshold. The Competition Commission of India will monitor any deals that potentially violate competition laws. Additionally, the vision document suggests that port tariffs should not be lower than the operating costs per tonne of the asset, to prevent private players from engaging in predatory pricing that could harm government-owned ports.

The document also emphasizes the need for transparency in tariff structures. While major ports and PPP concessionaires operated by the central government publish their tariffs online, there is currently a lack of transparency regarding tariffs charged by non-major ports and PPP concessionaires under the State Maritime Boards and state governments. The vision document suggests that all non-major ports and their concessionaires should provide updated tariff information on their websites for transparency and ease of trading.

Overall, the government’s Maritime India Vision 2047 aims to promote the development of ports while addressing concerns such as dominance in the sector, fair pricing, and transparency in tariff structures.

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