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Consider the following statements regarding the Board of Major Port Authority:
  1. It was established recently under the Major Port Authority Act, 2021.
  2. It has to seek the prior sanction of the Central Government to raise any loan.
  3. It will adjudicate the disputes or claims related to rights and obligations of major ports.
Which of the statements given above is/are correct?
  • a)
    1 only
  • b)
    2 and 3 only
  • c)
    3 only
  • d)
    1, 2 and 3
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
Consider the following statements regarding the Board of Major Port Au...
  • The Major Port Authority Act, 2021 seeks to provide for regulation, operation and planning of major ports in India and provide greater autonomy to these ports. It seeks to replace the Major Port Trusts Act, 1963. 
  • The Major Port Authority Act, 2021 will apply to the 11 major ports of Chennai, Cochin, Jawaharlal Nehru Port, Kandla, Kolkata, Mumbai, New Mangalore, Mormugao, Paradip, V.O. Chidambaranar, and Vishakhapatnam. 
  • The 2021 Act provides for the creation of a Board of Major Port Authority for each major port. These Boards will replace the existing Port Trusts. Hence statement 1 is correct. 
  • The Board will comprise of a Chairperson and a Deputy Chairperson, both of whom will be appointed by the central government on the recommendation of a selection committee. 
  • Under the 1963 Act, the Board had to seek the prior sanction from the central government to raise any loan. 
  • Under the 2021 Act, to meet its capital and working expenditure requirements, the Board may raise loans from any: scheduled bank or financial institution within India, or any financial institution outside India that is compliant with all the laws. However, for loans above 50% of its capital reserves, the Board will require prior sanction from the central government. Hence statement 2 is not correct. 
  • The 2021 Act provides for the constitution of an Adjudicatory Board by the central government. This Board will replace the existing Tariff Authority for Major Ports constituted under the 1963 Act 
  • Functions of the Adjudicatory Board will include:
    (i) certain functions being carried out by the Tariff Authority for Major Ports,
    (ii) adjudicating on disputes or claims related to rights and obligations of major ports and PPP concessionaires, and
    (iii) reviewing stressed PPP projects. Hence statement 3 is not correct.
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Consider the following statements regarding the Board of Major Port Authority: It was established recently under the Major Port Authority Act, 2021. It has to seek the prior sanction of the Central Government to raise any loan. It will adjudicate the disputes or claims related to rights and obligations of major ports.Which of the statements given above is/are correct?a)1 onlyb)2 and 3 onlyc)3 onlyd)1, 2 and 3Correct answer is option 'A'. Can you explain this answer?
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