World Trade Organization Organisation Mondiale du Commerce Organización Mundial del Comercio

Right of Third Refusal: Indian built foreign owned (foreign flag) vessel.

Last Right of Refusal: any foreign flag vessel.

2. 
   Tonnage Tax Scheme which reduces effective rate of tax offering companies a fixed, low rate of tax based on a "notional Income" concept.
   

Egypt 12:

12- Page 164 paragraph 143

What are the reasons behind increased pre-berthing waiting period despite India's efforts towards enhancing efficiency of ports? Also what are the steps taking in this regard to lessen disparity between major ports?

Reply: There is delay in evacuation of cargo and decrease in ship productivity rate. Besides, there are inadequacies of proper storage facilities and non-availability of draft. Due to these constraints the modern large size vessels find it difficult to call at the Indian ports. This undermines the competitiveness of Indian ports. Besides, there are issues of congestion in the roads connecting to the ports with national highways and poor rail road connectivity which leads to the poor evacuation of cargo. Most of the ports also face limitation of draft to handle bigger vessels. Major ports have taken steps to increase draft of channels through capital dredging.

Egypt 13:

13- Page 164 paragraph 144

What are the conditions specified for foreign investment? How often are they modified? Does modification of these conditions create some kind of uncertainty among foreign investors in port administration services?

Reply: Foreign investment is allowed in port operations and not in port administration (management), subject to the guidelines of public private partnership (PPP) announced by the Government of India for major ports. Foreign direct investment up to 100% is permitted for construction and maintenance of ports and harbours.

The PPP guidelines are subject to review and modifications in the future depending upon the changes in the port sector and economic condition of the country. This also applies in the case of foreign investment in the port operations.

Egypt 14:

14- Page 165 paragraph 146

The Secretariat Report indicated that the Ministry of Shipping drafted the Major Ports Regulatory Authority Bill 2011 to establish the Major Ports Regulatory Authority (MPRA). Could you provide a brief on the content of this bill?

Reply: The Major Ports Regulatory Authority Bill when enacted will provide for the establishment of Regulatory Authorities to regulate the facilities and services provided at the ports and to monitor the performance standards of port facilities and services and for matters connected therewith or incidental thereto. The Bill for the Major Ports Regulatory Authority is in the draft stage and the contents of the Bill are yet to be firmed up.

Egypt 15:

15- Page 165 paragraph 150

What are the current ongoing developments in overland transport?