(a) the details of the recommendations made by Expenditure Reforms Commission set up in his Ministry as on December 31, 2001;
(b) the details of those recommendations which are yet to be implemented by his Ministry or departments under his Ministry alongwith reasons for not implementing them till date; and
(c) the time by which these are likely to be implemented in true spirit?
MINISTRY OF STATE IN THE MINISTRY OF SHIPPING (SHRI. SHRIPAD Y. NAIK)
(a) to (c) A statement is annexed.
ANNEXURE REFERED TO IN REPLY TO PART (a) to (c) OF LOK SABHA UNSTARRED QUESTION NO. 2756 FOR ANSWER ON 20TH MARCH, 2002 ASKED BY SHRI AMAR ROYPRADHAN.
ACTION TAKEN NOTE/COMMENTS ON RECOMMENDATIONS OF EXPENDITURE REFORMS COMMISSION (9TH REPORT)
Recommendations No. 1
Introduction of VRS in all major ports and the decision to roll back the retirement age from 60 to 58, has helped reduce the staff strength by 16000 persons. However, the staff strength of Indian ports is still very high and the schemes should be persued actively to bring down the strength to normative levels.
Action Taken
The Ministry has already decided to ban all new recruitments. As per the instructions issued by the Ministry of Finance, all such vacancies which remain vacant for more than one year stand abolished. The Ports are being asked to identify surplus staff after ascertaining the requirement of staff and steps will be taken by the Ministry to gradually reduce the excessive staff.
Recommendations No. 2
Government should consider setting up Port Companies to which all the commercial facilities like berths and cargo handling equipment could be leased out with the Port Trusts retaining only the ownership of the land and water fronts. These Port companies should be privatized at the earliest preferably through public offering.
Action Taken
A Bill to amend the Major Port Trusts Act, 1963 has been introduced in Lok Sabha on 31.8.2001 which will provide an enabling provision in the Act for corporatisation of Major Port Trusts.
Recommendations No. 3
The post of Development Adviser and the Development Wing in the Ministry could be abolished.
Action Taken
This Ministry does not agree to the abolition of the post of Development Adviser (D.A.). The post of Development Adviser has been reduced to the level of JS and the strength of Development Wing has been reduced recently.
Recommendations No.4
There is no rationale for retaining the Dredging Coproration of India (DCI) a Public Sector Undertaking and it should be privatized.
Action Taken
Matter has been referred to Disinvestments Commission.
Recommendations No. 5
The Minor Ports Survey Organisation which is functioning under the Ministry should be corporatised or made to operate on commercial lines or attached to the office of the Chief Hydrographer to the Govt. of India.
Action Taken
The MPSO is already operating on no-profit-no loss basis. The administrative control of MPSO has been shifted from Andman & Lakshdweep Harbour Works, Port Blair to Directorate General Shipping. The Headquarters of both are in Mumbai. It is felt that no useful purpose will be served by attaching MPSO to the Office of Chief Hydrographer to the Govt. of India.
Recommendations No. 6
The Andaman & Lakshadweep Harbour Works should either be handed over to the concerned UT Government or merged with Calcutta/Chennai Port Trusts and Cochin Port Trusts.
Action Taken
The Ministry has already recommended the merger of Andaman & Lakshadweep Harbour Works with the UT Administration of Andaman & Lakshadweep respectively during the 10th Plan.
Recommendations No. 7
Licensing of Ship Acquisition should be abolished and the Government should leave it to DG, Shipping to ensure the safety and sea worthiness of a ship.
Action taken
Already done. Necessary orders/guidelines issued on 15.6.2001.
Recommendations No.8
The Indian Institute of Maritime Studies, which is proposed to be set up under the Societies Registration Act, to run the four Institutes namely, (I) Training Ship Chanakya, (II) Marine Engineering and Research Institute, Mumbai, (III) Marine Engineering and Research Institute, Calcutta and (IV) LBS College of Advance Maritime Studies and Research, Mumbai should be given status of a deemed University or of an IIT and should become totally autonomous.
Action taken
Already being done. Necessary action is in progress.
Recommendations No. 9
SCI is a candidate for disinvestment and the disinvestment should be completed.
Action taken
Disinvestment process is already on. The Govt. has decided to bring down its equity share to 26%.
Recommendations No. 10
Computerisation of the operations of Transchart would result in a reduction in the staff strength. This exercise should be carried out in six months.
Action taken
Action for full computerization of Chartering Wing is already in hand. However, any reduction in the staff strength of Chartering Wing can be assessed only after the Wing is fully computerized and assessment is carried out about the requirement of the staff say after 6 to 12 months after computerizing the Wing fully.
Recommendations No. 11
Efforts should be made to secure a strategic partner for HSL, which is a loss making company and disinvest GOI holding.
Action taken
The company has already been referred to disinvestments Commission.
Recommendations No. 12
There is no strategic or commercial rationale for continuing CSL in the Public Sector. The company should be privatized as soon as possible.
Action taken
The company has already been referred to disinvestments Commission.
Recommendations No. 13
HDPE has valuable land in Calcutta and it should be sold as real estate.
Action taken
The decision on the future of the company is under active consideration. Therefore the decision on disposal of land can be arrived at only thereafter.
Recommendations No. 14
The ship building and repair activity of CIWTC should be closed and the assets disposed of.
Action taken
Action has already been initiated to close down the Rajabagan Dockyard of CIWTC with the Cabinet`s approval.
Recommendations No. 15
With the ship building and ship repairs carried out by professionally run shipyards both in the public and private sector and the ancillary development taking place in a liberalized economy, there is no case for the continuance of SBR Wing. Development activities relating to ship building and ship repair should be best left to the yards themselves who have much better awareness and understanding of the technology advances in the sector than the Ministry.
Action taken
Necessary action is in progress.
Recommendations No. 16
NSDRC need not remain under the administrative control of the Ministry.
Action taken
NSDRC is already on its own and is not dependent on budgetary resources. There is no reason to take it out of the administrative control of the Ministry as the mandate of the Society is within the purview of the Ministry.
Recommendations No. 17
The matter whether the Establishment and operation of Light Houses and other navigational aids can be privatized with Government or an independent, regulator ensuring standard and quality, should be examined.
Action taken
These cannot be privatized. Lighthouses provide essential infrastructure and navigational aids which are part of safety requirements which cannot be commercialized. At the moment Department of Lighthouses and Lightships is not a burden at the state exchequer because light dues collected are more than enough to meet the expenses of the department.
Recommendations No. 18
A Maritime Authority should be set up to oversee and regulate conservancy function in the major and minor ports and exercise all the functions of the D.G.(Shipping) and also of D.G. (Lighthouse & Lightships). The Maritime Authority should have a Member incharge of the ports, a Member Incharge of shipping, a Member Incharge of Lighthouses and a Member of Finance and be headed by one of them with the rank of Additional Secretary. Consequently, the Tariff Authority of Major Ports could be wound up and the Maritime Authority empowered to look into cartelisation/monopoly issues and arbitrary fixation of tariffs by ports/shipping lines where necessary. With the setting up of Maritime Authority, it should be sufficient for one J.S. level officer in the Ministry assisted by one or two Deputy Secretaries to look after port policy, international protocols and coastal shipping.
Action taken
It is an important recommendation because it will bring into focus, at the field level, the different functions of the Ministry now performed through field organizations. This will involve formulation of functional set up of the Maritime Authority, delegation of powers, appropriate legislation and other consequential policy issues. Hence it would be necessary to have a study done on this question to evolve an appropriate institutional mechanism to meet these requirements. This Ministry has prepared the terms of reference of this study and has asked D.G. (Shipping) to undertake it.
Recommendations No. 19
Government must accord the highest priority to the Inland Water Transport and formulate a National Waterways Development Programme on the lines of the NHDP and empower the IWAI by broadening its Board by including Secretary, Expenditure, Secretary, Planning etc. to take all investment decisions relating to an approved waterway in order to make it navigable.
Action taken
Acceptable. The board of IWAI has been expanded in 2001 by providing for 3 full time Directors and 3 Part Time non-official Directors. Activities of IWAI do not warrant its further expansion .
Recommendations No. 20
With the corporatisation of ports the setting up of a Maritime Authority to exercise the statutory powers of DG, Shipping and to ensure conservancyin ports and manage light houses, with the disinvestment of Shipping Corporation of India, the shipyards and other PSUs in the Ministry and with the abolition of the Development and the SBR Wings in the Ministry, the Ministry`s work would get reduced very considerably.
Recommendations No. 21
It should be sufficient for the ministry to have one JS with two Deputy Secretaries to look after all port related matters and one Joint Secretary with one Deputy Secretary to look after residual shipping matters and inland water transport. Transchart should continue although its staff strength should be reviewed. With the reduction in the workload of the Ministry of Shipping and the Ministry of Road Transport and Highways the possibility of combining the two ministries once again into a Ministry of Surface Transport should be considered so that an integrated approach can be brought to bear on all modes of surface transport, barring the railways.
Action taken on No. 20 & 21
These are a consequential recommendation rather than substantive one. The strength of the Ministry of Shipping would be examined after the actions mentioned in para 20 are completed. Merger of the two Ministries can be considered at the appropriate time.