MoS put its notification in abeyance for the dollar-linked coastal tariff

The MoS has put in abeyance its notification for the dollar-linked coastal tariff, which it had issued in September 2015. In October 2015, the Tariff Authority for Major Ports (TAMP) notified that the restatement of rates for coastal vessels should take into account the exchange rate fluctuation of the Indian rupee against the dollar, so that vessel-related charges for all coastal vessels do not exceed 60 per cent of the corresponding charges for other vessels. However, TAMP has noted that the general revision of proposals for a few ports after the restatement of coastal rates has resulted in a steep increase in rates for coastal vessels/containers. Moreover, transactions in coastal shipping are entirely domestic and the tariff is collected in rupees. The need to link tariffs to the dollar will be reviewed by the tariff authority at a later date. Till that time, TAMP has been directed to prescribe the coastal cargo/container-related charges at all major port trusts as well as for private operators.