In a move that is intended to increase the competitiveness and efficiency of major ports, the union shipping ministry announced the new tariff guidelines.

According to the new norms, Tariff Authority for Major Ports (TAMP) would first set the reference tariff for a particular commodity at a major port, which will applicable for five years. TAMP would also prescribe performance standards of facilities and services offered at the port project.

In the first year, the indexed reference tariff would be the ceiling tariff. However, the operator will be free to propose higher tariff from the second year, subject to a cap of 15 percent over and above the indexed reference tariff.

From the date of issue, the new guidelines will come into effect prospectively. But the 2005 and 2008 guidelines will continue to apply to projects bid under them.

The government announced this new guidelines in order to attract additional investments in the port sector, shipping ministry said.

Minister of state for shipping Milind Deora said the move would help in bringing the major ports on a par with non-major ports. Ministry officials said the guidelines will be implemented in a phased manner.

There are 13 major ports in India and around 60 active non-major ports. The market share of major ports is 60% currently.