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The KARNATAKA MARITIME BOARD ACT, 2015

Karnataka · state statute
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THE KARNATAKA MARITIME BOARD ACT, 2015 
 
ARRANGEMENT OF SECTIONS  
 
Statements of objects and reasons:  
Sections: 
CHAPTER – I 
PRELIMINARY 
1. Short title, commencement and application 
2. Definitions. 
 
 
CHAPTER - II 
ESTABLISHMENT OF KARNATAKA MARITIME BOARD 
 
3. Establishment of Karnataka Maritime Board 
4. Disqualifications of members 
5. Term of Office of Members 
6. Vacation of office of the Board’s members 
7. Eligibility of re-appointment 
8. Filling of vacancies 
9. Absence of Chairman 
10. Meetings of Board 
11. Committee of the Board 
12. Fees and allowances payable to members  
13. Members of Board or Committee not to vote in certain cases 
14. Defects in appointment not to invalidate acts, etc  
15. Delegation of powers 
16. Functions of the Board 
 
CHAPTER - III 
Staff of the Board 
17. Appointment of Chief Executive Officer and other officers 
18. Terms and conditions of the employees of the Board 
19. Absorption of employees in to the Board service 
 
 
CHAPTER - IV 
Property and contracts 
 
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20. Transfer of assets and liabilities of Government to Board  
     21. Existing rates, etc., to be continued until altered  by the Board  
22. Repayment of Capital with interest  
23. Procedure when immovable property cannot be acquired by agreement  
24. Contracts by Board  
 
CHAPTER - V 
WORKS AND SERVICES TO BE PROVIDED AT PORTS BY THE BOARD 
 
25. Powers of the Board to execute works and provide appliances  
26. Power of the Board in undertaking certain works  
27. Power of Board to order sea going vessel to use dock, wharves etc 
28. Accommodation for sea going vessels to use docks, wharves, etc   
29. Power to order vessels not to come alongside of, or  to be removed from docks, wharves etc 
30. Power of Government to exempt vessels from obligation to use wharves etc 
31. Board to declare when vessels other than sea going vessels compelled to use dock, wharves, etc 
 32. Performance of services by Board or other person 
33. Responsibility of Board for loss, etc., of goods 
     34. Accommodation to be provided for customs officers in wharves, etc., appointed under Customs Act, 1962 
35. Power to permit erection of private wharves, etc., within the limits of port subject to conditions 
36. Compensation payable in certain cases where use of any private wharf, etc., rendered unlawful 
 
CHAPTER - VI 
IMPOSITION AND RECOVERY OF RATES AT PORTS 
37. Scales of rates for services performed by board or other person  
38. Scale of rates and statement of conditions for use of property belonging to Board  
39. Consolidated rates of combination of services 
40. Power to levy concessional rates in certain cases  
 41. Scale of rates and conditions  
 42. Power of Government to require modification or cancellation of rates  
43. Remission of rates or charges  
44. Refund of overcharges  
45. Notice of payment of charges short levied or erroneously refunded  
46. Time for payment of rates on goods  
47. Boards lien for rates  
48. Ship owner’s lien for freight and other charges  
49. Sale of goods after two months if rates or rent are not paid or lien for freight is not discharged  
50. Disposal of goods not removed from premises of Board within time limit  
51. Application of sale proceeds  
52. Recovery of rates and charges by detainment of vessel  
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53. Grant of port clearance after payment of rates, realization of damages, etc 
 
CHAPTER - VII 
BORROWING  POWERS OF BOARD 
 
54. Powers to raise loans.-   
55. Board Securities 
56. Right of joint or several payees of securities.–   
      57. Powers of one or two or more joint holders to grant receipt.-   
58. Endorsement to be made on security itself.-  
59. Endorsement of security and liable for amount thereof 
60. Issue of duplicate security.-  
61. Issue of converted, etc., securities.-  
62. Discharge in certain cases.-  
63. Security for loans taken by the Board 
64. Remedies of Government in respect of loans made to Board.-  
65. Power of Board to repay loans before due date.-  
66. Establishment of sinking fund.-  
67. Investment and application of sinking fund.- 
68. Examination of sinking fund 
69. Power of Board to raise loans on short Term Bills.-  
70. Power of Board to take Temporary Loans or Over Drafts.-  
71. Power of Board to borrow money from International Bank for Reconstruction and Development or other    
       Foreign Institutions.-  
 
CHAPTER - VIII 
Revenue and Expenditure 
72. General Fund of the Board.-  
73. Application of moneys in general accounts.-  
74. Power to transfer moneys from general account to specified particular account and vice-versa.-  
75. Establishment of Reserve Funds 
76. Power to reserve Board’s securities on Board’s own investments.-  
77. Prior sanction of the Government to charge expenditure to capital.-  
78. Works requiring sanction of Board or Government.-  
79. Power of Chief Executive Officer as to execution of works.-  
80. The Power of Board to compound or compromise claims.-  
81. Writing off losses.-  
82. Powers etc., of Board as Conservator 
              83. Budget estimates.-   
84. Preparation of supplemental estimates.-  
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85. Re-appropriation of amounts in estimates.-  
86. Adherence to estimate except in emergency.-  
87. Duty of board to meet liability towards salaries, allowances, pensions etc 
88. Accounts and audit.-  
89. Publication of audit report 
90. Board to remedy defects and irregularities  pointed out in audit report.-  
91. Government to decide difference between Board and auditors.-  
CHAPTER - IX 
SUPERVISIONS AND CONTROL OF GOVERNMENT 
92. Administration report.-  
93. Submission of Statements of income and expenditure to Government 
94. Power of Government to supersede Board.-   
95.  Power of Government to give directions to Board 
 
CHAPTER - X 
PENALTIES ETC 
 
96. Persons employed under this Act to be public servants for certain purposes.-  
97. Penalty for contravention of sections 27, 28, 29 and 31.-  
98. Penalty for setting up wharves, quays, etc., without permission.-  
99. Penalty for evading rates etc..-  
100. Recovery of value or damage to property of Board.-  
101. Person interested in contracts, etc., with the Board to be deemed to have committed an offence under section  
        168 of the Indian Penal Code.-  
102. Other offences.-  
103. Cognizance of offences.-  
104. Offence by companies.-  
CHAPTER - XI 
MISCELLANEOUS 
 
105. Constitution of State Ports Consultative Committee.-  
106. Local Advisory Committee.-  
107. Limitation of proceedings in respect of things done under this Act.-  
108. Protection of action done in good faith.-  
109. Power of the Government to make rules 
110. General power to make regulation 
111. Provisions with respect to regulations.-  
112. Power of Government to direct regulations to be made or to make regulations.-  
113. Power of Government to make first regulations.-  
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114. Power of the Government to limit regulatory functions of the Board.-  
115. Posting of certain regulations, etc.-   
116. Saving of right of Government and municipal Council to use wharves, etc., for collection of duties and power  
        of Customs officer.-  
117. Application of provisions of Act to aircraft.-  
118. Power to remove difficulties.-  
119. Repeal and savings.-   
 
STATEMENT OF OBJECTS AND REASONS 
 
 ACT 41 OF 2017. - Karnataka has a coast line of about 300 kms, which is dotted with 10 
non-major ports, besides the major port at New Mangalore.  These non -major ports, which include 
Karwar, Malpe harbour, Tad ri, Old Mangalore, etc., are currently managed by the Public Works 
Department through the Director of Ports and Inland Water Transport.  The revenue receipts from 
these ports are credited into the Consolidated Fund of the State, while the development and 
maintenance expenditure are met out of the budgetary grants.  In the circumstances, there is no 
relationship between the receipts and expenditure of the Ports & IWT sector.  Further, the 
Directorate of Ports & IWT is not able to raise finance from the marke t directly for undertaking 
development activities. 
 
 Some of the major maritime States, notably Gujarat, Maharashtra and Tamil Nadu, have 
already set up Maritime Boards and have seen tremendous growth in development of the 
infrastructure for ports and alli ed activities.  Keeping such experience in view, the Maritime States 
Development Council has been advising all the maritime States to constitute Maritime Boards. 
 
 Karnataka also has several inland waterways on both, west flowing as well as east flowing 
rivers, that offer the potential for development of an environment friendly mode transportation of 
goods and passengers, particularly for several interior locations.  The Maritime Board would be in a  
position to develop and maintain the inland waterways too.   Further, the Board would be in an 
advantageous position to prepare and implement schemes for coastal protection, which has become 
an important issue for the growth and development of the coastal regions of the State. 
 
Ministry of Home Affairs, Government  of India vide letter No.F.No:17/08/2012/Judl&PP, 
dated:09.12.2014 has suggested to the State Government to withdraw the early bill and to send 
modified version of the Bill to the Government of India, after it is passed by the State Legislature. 
 
 As sugge sted by Government of India, Ministry of Home Affairs, all the amendments are 
incorporated in modified "Karnataka Maritime Board Bill, 2015".  
 The Bill among other things  provides for,-  
(i) constitution and functioning of the Maritime Board for Karnatak a.  The Board 
shall be in a position to find ways and means to undertake various 
developmental projects and maintenance activities in relation to ports, harbours, 
inland waterways and coastal protection and thus help in the growth and 
development of the coastal region and its hinterland.  
(ii)  Developing all Karnataka ports on public private partnership Basis.  
(iii) development and maintenance of fishing harbours by the Board with suitable 
budgetary grants and subventions from the Government.  However, th e 
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operations and management of the fishing harbours shall continue to be done by 
the Fisheries Department and not by the Maritime Board. 
 
Hence, the Bill. 
 
[L.A. Bill No.41 of 2015, File No. Samvyashae 54 Shasana 2015]  
[entry 31 of List III of the Seventh Schedule to the Constitution of India.] 
[Item (i) of sub -clause (3) of cl ause 36 was repug nant to the provisions of the Arbitration and 
Conciliation Act, 1996 and clause 56 was repug nant to section 45 of the Indian contract Act 1872 
and clause 62 was repu gnant to the provisions of the  Indian Limitation Act, 1963. Therefore the  
Hon’ble Governor reserved the said Bill for the consideration of His Excellency, the President of India 
under Article 200 of the constitution of India as required by clause (2) of Article 254] 
  
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KARNATAKA ACT 41 OF 2017 
(First published in the Karnataka Gazette Extraordinary on the Twenty third day of August, 2017) 
 
THE KARNATAKA MARITIME BOARD ACT, 2015 
(Received the assent of the President on the Eleventh day of August, 2017) 
 
An Act to provide for the development and Management of Ports Inland Water Ways and the 
Coastal region in the State of Karnataka by establishing the Karnataka Maritime Board and to 
provide for matters connected therewith and incidental thereto; 
Whereas, it is  expedient to provide for rapid development and  management of Ports and 
Inland Water Ways and Coastal region in the State of Karnataka by establishing the Karnataka 
Maritime Board and to provide for matters connected therewith and incidental thereto; 
 Be it enacted by the Karnataka  State Legislature in the sixty -sixth year of the Republic of 
India as follows:- 
 
CHAPTER – I 
PRELIMINARY 
1. Short title, commencement and application.- (1)   This Act may be called the Karnataka 
Maritime Board Act, 2015. 
(2) It  shall come into force on such date, as the State Government may, by notification, 
appoint.  
            (3) It applies to all the non -major ports in the State of Karnataka to which the Indian Ports 
Act, 1908 applies. 
2. Definitions.– In this Act, unless the context otherwise requires,-  
(a) “appointed day”  in relation to any  non-major  port means the day on which this Act is 
made applicable to that port; 
(b) “Board” means the Karnataka Maritime Board constituted under section 3; 
(c) “Board Security” means debentures, bonds or dock certificates issued by the Board in 
respect of any loan contracted by it under the provisions of this Act; 
(d)  “Chairman” means the Chairman of the Board appointed under section-3 and includes 
the person appointed to act in his place under section 9; 
 
(e) “dock” includes all basins, locks, cuts, entrances, graving docks, graving blocks, 
inclined planes, slipways, gridirons, moorings, transit sheds, warehouses, godowns, 
open plots and other works and things pertaining to any dock and also the portion of 
the sea enclosed or protected by the arms of groynes of a harbour; 
(f) “foreshore”  in relation to a port means the area between the high water mark and the 
low water mark relating to that  port; 
(g) “goods”  includes live stock and every kind of  movable  property; 
(h) “Government” means the State Government; 
(i) “high water mark”  in relation to a port means a line drawn through the highest points 
reached by ordinary spring tides at any season of the year at that port; 
(j) “immovable property”  includes wharfa ge  rights and all other rights exercisable on, 
over, or in respect of, any land, wharf, dock or pier; 
(k) “Indian Ports Act” means the Indian Ports Act, 1908 (Central Act 15 of 1908); 
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(l) “Inland Water Transport (IWT)” means Inland Water Transport system includin g ferry 
services in  the State; 
(m) “land” includes the  bed  of  sea or river below high water mark and also things attached 
to the earth or permanently fastened to anything attached to the earth; 
(n) “low water mark” in relation to a port means a line dr awn through the lowest points 
reached by ordinary spring tides at any season of the year at that port;  
(o)  “Major Ports” shall have a same meaning assigned to it in the Indian Ports Act 1908 
(Central Act 15 of 1908); 
(p) “master” shall have the same meaning as assigned to in the Indian Ports Act 1908 
(Central Act 15 of 1908); 
(q) “member” means a member of the Board or its Committee, as the case may be; 
(r)  “Non-major port” means  port other than a major port; 
(s)   “owner”,- 
(i) in relation to goods includes any consignor, consignee, shipper’s  agent for the 
sale, custody, loading or unloading of such goods; and  
(ii) in relation to any vessel or craft making use of any port, includes any part 
owner, charterer, consignee or mortgagee in possession thereof; 
(t)  “pier”  includes any stage, stairs, landing  place, hard jetty, floating barge, transhipper 
or pontoon and any bridges or other works connected therewith; 
  Explanation.- For the purpose of this clause, "transhipper" means a floa ting 
craft for vessel whether dump or self propertied, on which and provided for 
discharging cargo from a barge or warf and loading it into a ship. 
(u)  “port”  means any non-major port to which this Act applies within such limits as may 
from time to time be defined by the Government under the Indian Ports Act;  
(v)  “port approaches”  in relation to a port means those  parts of the navigable rivers and 
channels  leading to the port in which the Indian Ports Act 1908 (Central Act 15 of 
1908) is in force; 
(w) “prescribed” means, - prescribed by rules and regulations made under this act;  
(x)  “public securities”  means,– 
(i) promissory notes, debentures, stock or other securities of the State Government: 
Provided that securities both the principal whereof and the interest whereof have been 
fully and unconditionally guaranteed by any state Government shall be deemed for the 
purposes of  this clause, to be securities of state Government; 
(ii) debentures or other securities (including the Board Securities) for  money issued by 
or on behalf of any local authority, Improvement Board or Port Trust under the authority or 
any law for the time being in force in the State. 
- 
(y) “rate” includes any toll, due, rent, fee or charge leviable under this Act; 
(z) “regulations” means regulations made by the Board under this Act. 
(z-a) “State” means the State of Karnataka”. 
(z-b) “vessel” includes anything made for the conveyance, mainly by water, of human being 
or of   goods; 
(z-c) “wharf ”  includes any wall or stage and any part of the land or foreshore that may be 
used for loading or unloading goods or for the embarkation or disembarkation of 
passengers and any wall enclosing or adjoining the same.                         
 
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CHAPTER - II 
ESTABLISHMENT OF KARNATAKA MARITIME BOARD 
 
3. Establishment of Karnataka Maritime Board. -  (1)  As soon as may be after the 
commencement of this Act, the Government may, by notification, in the official Gazette, establish a 
Board to be called the Karnataka Maritime Board. 
(2) The Board shall consist of following members, namely:- 
(1)  The Additional Chief Secretary to Government or Additional Chief 
Secretary and Development Commissioner nominated by the 
Government. 
Chairman 
(2) The Principal Secretary to Government, 
Public Works, Ports and Inland Water Transport Department.    
Ex-officio Member 
(3) The Principal Secretary to Government,   Finance Department. Ex-officio Member 
(4) The Principal Secretary to Government, Home Department. Ex-officio Member 
(5) The Principal Secretary / Secretary to Government of any Department  
as deemed fit by Government. 
Ex-officio Member. 
(6) The Joint Secretary, Government of India, Ministry of Shipping. Ex-officio Member. 
(7) The Inspector  General of Police, Internal Security Wing, incharge of 
costal security 
Ex-officio Member 
(8) The Director of Ports and Inland Water Trnasport Department. Ex-officio Member 
(9) The Director of Fisheries, Karnataka. Ex-Officio Member. 
(10) The Naval Officer in charge, INS Kadamba Karwar Uttara Kannada 
District.  
Ex-officio Member 
(11) The Commander, Coast Guard District, Head Quarters, No.3, 
New Mangalore 
Ex-officio Member 
(12) Commissioner of Customs, Karnataka Ex-officio Member 
(13) Four persons having  expertise in the development of ports nominated 
by the Government as shown below:- 
(i) One member who has qualification of Master Mariner (FG) who 
has experience and expertise in matters relating to ports, shipping, 
maritime affairs or  in the administration or management of such 
matters. 
(ii) One member who has experience, expertise and academic 
qualification   of a Degree in the subject of Harbour Engineering or 
Civil Engineering and has wide experience relating to Harbour Works. 
(iii) One member representing the Chambers of Commerce and 
Industry in the coastal districts. 
 
 
Member 
 
 
Member 
 
Member 
 
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(iv) One member who has expertise in financial management Member 
(14) One member who has experience, expertise in coastal engineering, 
marine engineering Hydrographic Survey or Prevention of sea erosion 
/ coastal protection nominated by the Government. 
Member 
(15) The Member (Technical) of the Board Ex-officio Member 
(16) The Chief Executive Officer of the Board Ex-officio Member-
Secretary 
(3) The Board shall be a body corporate by the name aforesaid having perpetual succession 
and a common seal with power, subject to the provisions of this Act to acquire, hold and 
dispose of property, both movable and immovable and to contract, and may by the said name 
sue and be sued. 
(4) The State Government shall appoint one of the members mentioned in serial No. (2) to (5) 
of sub-section (2) as the Vice Chairman of the Board. 
(5) The head office of the Board shall be at such place as th e Government may, by 
notification, direct. 
4. Disqualifications of members.- A person shall be disqualified for being appointed, or for 
continuing as a member of the Board, if he,- 
     (a) has been removed or dismissed from the service of Central or any State Government or of a 
local authority or of a corporation owned or controlled by the State or Central Government; or 
     (b) has been convicted and sentenced to imprisonment for an offence  amounting to  moral 
turpitude; or   
     (c) is an undischarged insolvent; or 
     (d) has directly or indirectly any share or interest in any work done by order of the Board or in 
any contract or employment with, by, or on behalf of the Board:        
     Provided that no person shall be deemed to have any share or interest in such work contract or 
employment by reason only of his, – 
     (i) having a share in any company or firm which may contract with or be employed by or on 
behalf of the Board; or 
     (ii) having a share or interest in any newspaper in which any advertisement relating to the affairs 
of the Board may be inserted; or  
     (iii) being interested in any loan of money to the Board; or 
     (iv) having a share or interest in the sale of any article to the Board of a value not exceeding 
rupees 10,000/- in any one financial year, in which he trades  
5. Term of Office of Members. - Subject to the provisions of this Act,  the non official 
member of the Board, shall hold office  during the pleasure of the Government and in any case for a 
period not exceeding  two years.       
6. Vacation of office of the Board’s members.- (1) The Government shall remove a member 
of the Board if he,-  
(a) becomes subject to any disqualification specified in  section 4; or 
(b) refuses to act or becomes incapable of acting; or 
(c) has, in the opinion of the Government become incapable of representing the interests 
by virtue of which he was appointed; or 
(d) is without the permission of the Board previously obtained, absents himself from three 
consecutive meetings of the Board; or 
(e) is acts in  contravention of the provisions of section 13. 
 11
(2) A member of the Board other than the ex -officio member may resign from his office by 
tendering his resignation in writing to the chairm an who shall forward the same to the Government 
for acceptance. The resignation shall not take effect until it is accepted by the Government. 
7. Eligibility of re -appointment.- Any person ceasing to be a member shall, unless 
disqualified under section 4, be eligible for reappointment. 
8. Filling of vacancies.- (1)  Any vacancy in the office of a member of the Board other than 
that of the ex-officio member shall be filled as early as possible after the occurrence of such vacancy 
by appointment of another member: 
Provided that where any vacancy occurs in the offi ce of any such member within three 
months preceding the date on which the term of the office of such member expires under section 5, 
it shall not be filled. 
(2) A member appointed under sub-section (1) shall hold office  for the remainder period only 
as the member in whose place he has been appointed would have held office if the vacancy had not 
occurred. 
9. Absence of Chairman.- If the Chairman is by infirmity or otherwise rendered   incapable 
of carrying  out  his duties  or  is   absent  on  leave   or o therwise the office of the chairman is 
vacant, the Vice-chairman and in the absence of both Chairman as well as the Vice -Chairman, such 
person, as the Government may appoint,  shall act as the Chairman. 
10. Meetings of Board. - (1)  The Board shall hold meetings at such time and places, and 
shall subject to the provisions of sub -sections (2), (3), (4) and [5] follow such procedure with regard 
to the transaction of business at its meetings as may be provided in the regulations. 
(2) The Board shall meet at least once in three months. 
(3) The Chairman and in his absence the Vice -Chairman, and in the absence of both the 
Chairman and Vice -Chairman, any person chosen by the members present from amongst 
themselves, shall preside at meetings of the Board. 
(4) All questions at a meeting of the Board shall be decided by a majority of the votes of the 
members present and voting and in the case of any equality of votes, the person presiding shall have 
a second or casting vote. 
  (5) The quorum for the meeting shall be not less than fifty percent of the total strength of the 
Board members and no business shall be transacted at any meeting unless the members 
constituting the quorum are  present throughout such meeting. 
(6) Proceedings of the meeting shall be forwarded to the Government. 
11. Committee of the Board. - (1)  The Board may from time to time constitute such 
committee or committees consisting of one or more of the Members of the Board and such other 
members as it may deem necessary from time to time for providing advice to the Board in carrying 
out its function under the Act on such terms and conditions as may be prescribed. 
(2) In addition to the committees under sub section (1), the Board may from time to time 
constitute from amongst it s members one or more committees consisting of such number as the 
Board may consider necessary for the purpose of  discharging such of its duties and functions as 
may be delegated to such committee or committees.   
(3) A committee constituted under sub-sections (1) and (2) shall meet at such time and place 
and shall follow such procedure in regard to the Transaction of Business at its meetings (including 
the quorum) as may be provided by regulations. 
12. Fees and allowances payable to members. -  The members shall be paid by the Board 
such fees and allowances for attending meetings of the Board or of any of its committees and for 
attending any work of the Board, as may be prescribed: 
Provided that, no fee shall be payable to the Chairman, Deputy-Chairman or any other 
trustee who is a Government servant. 
13. Members of Board or Committee not to vote in certain cases. -  A member of the 
Board or of a Committee thereof, who,- 
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     (i) has any direct or indirect pecuniary interest in any matter coming up for consid eration at a 
meeting of the Board or a Committee thereof; or 
     (ii) is interested professionally on behalf of a client or as agent for any person other than the 
Government or an undertaking owned or controlled by the Government or a local authority or a  
trade union registered under the Trade Unions Act, 1926 or member of an association formed for the 
purpose of promoting the interest or welfare of any class of employees of the Board shall; as soon a s 
possible after relevant circumstances have come to  his knowledge, disclose the nature of his interest 
at such meeting and such disclosure shall be recorded in the minutes of the Board or the committee, 
and the member shall not take part in any deliberation or decision of the Board or the committee 
with respect to that matter. 
14. Defects in appointment not to invalidate acts, etc.- No act or proceeding of the Board 
or of any of its committees shall be invalid merely by reason of,- 
     (a)  any vacancy therein or any defect in the constitution thereof; or  
(b) any disqualification of or any defect in the appointment of, a person acting as a member 
thereof; or 
     (c) any member having acted or taken part in any proceedings in contravention of section 13; or 
     (d) any defects or irregularity in its procedure not affecting merits of the case. 
15. Delegation of powers. - The Board, may, with the approval of the Government, direct 
that such of the powers and duties conferred or imposed upon it or under this Act as may be 
specified in such direction may also be exercised or performed by the Chief executive Officer subjec t 
to such restrictions and conditions as may be specified in such direction: 
Provided that the Chief Executive Officer shall exercise the powers and perform such of the 
duties specified in the direction subject to the supervision and control of the Board. 
16. Functions of the Board.- (1) It shall  be the obligatory function and duty of the Board,- 
(a)  to initiate and develop plans and frame guide lines for the port sector in the state; 
(b) to promote the use, development, and improvement of ports  in the state; 
(c)to  provide, maintain and operate ports in the state; 
(d) to provide and maintain adequate and efficient lighthouses beacons and other lights 
buoys and other navigational aids and services at such places as the board may deem 
appropriate; 
(e) to  regulate and control navigation within the limits of the port and the approaches to the  
ports in the state; 
(f) to exercise licensing and regulatory functions in respect of port infrastructure and services; 
(g) to exercise supervision and control over all po rt works in the state including those works 
entrusted on contract to third parties; 
(h) to frame  or make modifications and approve as required to the scale of rates for services 
provided by the board; 
(i) to plan or provide or secure  the provision of a safe economical and efficient sea transport 
system for movement of goods and persons in the state; 
(j) to furnish to the Government all information in respect to its property and activities in 
such manner and at such times as the Government may require; 
(k) to develop new non-major Ports in the State as per Indian Ports Act, 1908  with the 
approval of the Government subject to obtaining security clearance for new projects 
from Ministry of Home Affairs, Government of India; 
      Provided that, the Board shall ensure that all security clearance pertaining to 
projects/developments/operation of minor/private ports be processed in 
consultation with concerned central security agencies and in accordance with the 
standard operating procedures recommended by the Task Force on nation al 
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committee on strengthening maritime and coastal security (NCSMCS) against 
threats from the sea. 
(l) to provide  facilities and create Infrastructure for Ship building, Ship breaking and related 
activities; 
(m) to maintain and regulate ferry services and Inl and Water Transport System in Karnataka  
State; 
(n) without prejudice the above to provide or ensure the providing of such other services and 
other facilities as are in the opinion of the Board necessary for the efficient operation of 
ports systems in the state. 
        (2) In addition to the obligatory functions mentioned in sub section (1) of this section, 
the Board shall be entitled to perform the following functions subject to availability of funds 
by way of grants or subventions from the Government or any local authority etc: 
(a) to carry out flood relief works for natural calamity works in Karnataka coast 
(b) to undertake tourism development works in and the around the Karnataka coast. 
(c) To carryout coastal protection works and to prevent sea erosion in Karnata ka 
coast. 
(d) To construct and maintain fisheries harbours and create infrastructure required 
for promoting fishing activities in the state. 
(e) To carry out beach nourishments in Karnataka coast and  
(f) To manage and execute all types works as its relates to the Karnataka coast; 
 (3) The Government shall make suitable budgetary provisions as grants for subventions in 
aid of the revenues of the Board for  carrying out the activities specified in sub section (2) and a ny 
other service oriented works in the State including establishment charges therefore. 
 
CHAPTER - III 
Staff of the Board 
17. Appointment of Chief Executive Officer and other officers.- (1) The Government shall 
appoint such person as in its opinion has the qualification, experience of and capabilities for 
development, operation, management and administration of ports and Inland Water ways specified 
in the regulation to be the Chief Executive Officer of the Board. 
(2) The Board may create such posts and appoint such other officers and servants, as it 
considers necessary in accordance with the regulations made in this behalf for the efficient 
performance of its functions. 
(3) Notwithstanding any thing contained in sub -section (2), the Board may sanction the 
creation of or appoint any person to any post in acco rdance with the schedule of the employees of 
the board prepared in terms of section 18 (2) with the previous approval of the Government. 
 Provided that no person shall be appointed as a Pilot at any Port who is not for the time being 
authorized by the Board under the Indian Ports Act to Pilot vessels at that Port. 
18. Terms and conditions of the employees of the Board. - (1) The Board  may from time 
to time prepare and notify, with prior approvals  of the  
Government a schedule of the employees of the Bo ard  i.e. considered necessary, adequate and 
proper to maintain for the purposes of this Act and such schedule shall indicate therein the 
designations and grades of employees. 
[2) The qualification, remuneration, terms and conditions of service and the met hod of 
recruitment of the employees of the board shall be such as may be specified by the regulations. 
19. Absorption of employees in to the Board service. - (1)  Every  employee serving under 
the Government immediately before such day on which this Act com es into operation solely or 
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mainly for or in connection with the affairs of non -major Ports, Inland Water Transport and Coastal 
Protection  shall become  employees of the Board on absorption and shall hold his office therein by 
the same tenure subject to s uch terms as the Government may approve and unless he exercises an 
option for non absorption in to the Board service upon the same terms and conditions of service as 
he would have held  had the board  not been established and shall continue to do so until his 
retirement either on superannuation, medical invalidation, dismissal, removal or voluntary 
retirement: 
 Provided that the employees who do not offer for absorption in the Board service shall be 
deemed to serve in the Board on deputation: 
      Provided further that the tenure, remuneration and terms and conditions of service of any 
such employee shall not be altered to his disadvantage without the previous sanction of the 
Government. 
         (2) All existing service rules applicable to employees servin g under the Government shall 
continue to be applicable to the employees of the Government absorbed in the Board. 
(3) The Board shall have the power of granting leave to the employees of the Board. The Board 
shall also have the power to suspend, remove dismiss or dispose of any other question relating to the 
services of the employees of the Board in accordance with the regulations. 
(4) Any officer or Employee of the Board, aggrieved by an order involving his reduction in 
rank, removal or dismissal done by th e Board in accordance with the Karnataka Civil Service rules, 
other rules governing conditions of service including the  disciplinary  and conduct rules which are  
amended from time to time may with in such time and in such manner as may be provided for by 
regulations, prefer an appeal to the Government and the decision of the Government shall be final. 
 
CHAPTER - IV 
Property and contracts 
 
20. Transfer of assets and liabilities of Government to Board. -  As from the appointed 
day, in relation to any  port, Inland Water Ways / Ferry Service and Coastal Protection Works,- 
     (a) all  properties, assets and funds and all rights to levy rates vested in the Government for 
the purposes of the port Inland Wat er Ways / Ferry Service and Coastal Protection Works 
immediately before such day, shall be valued by an independent valuer approved by the Government 
and appoint such valuation, shall vest in the Board; 
     (b) all debts, obligations and liabilities incur red, all contracts entered into, and all matters 
and things engaged to  be done by, with or for the Government immediately before such day, for or in 
connection with the purposes of the  non-major port, Inland Water Ways / Ferry Service and Coastal 
Protection Works shall be deemed to have been incurred, entered into and engaged to be done by, 
with, or for the Board; 
      (c) all non -recurring expenditures incurred by the Government for or in connection with 
purposes of the non-major ports, Inland Water Ways/ Ferry Service and Coastal Protection Works up 
to such day and declared to be capital expenditure by the State  Government shall be treated as the 
capital provided by the Government to the Board;  
      (d) all rates, fees, rents and other sums of money due to the Government in relation to the 
non-major port, Inland Water Ways / Ferry Service and Coastal Protection Works immediately before 
such day, shall be deemed to be  due to the Board; 
      (e) all  suits and other legal  proceedings instituted by or against the Government immediately 
before such day for any matter in relation to  non-major port, Inland Water Ways / Ferry Service and 
Coastal Protection Works, may be continued by or against the Board. 
     21. Existing rates, etc., to be continued unti l altered  by the Board. - As from the 
appointed day, all rates, fees and other charges in relation to any non -major ports, Inland Water 
service and Ferry services, shall unless and until they are varied by the competent authority in 
 15
accordance with the pro visions of this Act, continue to be levied and collected, at the same rate at 
which they were being levied and collected by the Government before such day. 
22. Repayment of Capital with interest.- The Board shall repay at such  intervals  and  on 
such terms and conditions as the  Government may determine the amount which is treated under 
clause (c) of sub-section (1) of section 20 as capital  provided by the  Government and with interest 
at such rate as may be fixed by the Government and such repayment of c apital or payment of 
interest shall be deemed to be a part of the expenditure of the Board. 
23. Procedure when immovable property cannot be acquired by agreement. - Where any 
immovable property is required for the purposes of the Board, the Government may, at the request of 
the Board, procure the acquisition thereof under the provisions of the Right to Fair Compensation 
and Transparency in Land Acquisitions, Rehabili tation and Resettlement  Act, 2013 (Central Act 30 
of 2013) or any other applicable laws.  
24. Contracts by Board. - In respect of the contracts by the Board for the purposes of this 
Act, the following provisions shall have effect, namely:- 
      (a) Every contract shall be made on behalf of the Board by the Chief Executive Officer or an 
officer authorized by the Board. No contract in respect of leasing of water  front, jetty, waterway and 
corresponding infrastructure facilities thereof for a term exceeding five years shall  be made unless it 
is previously approved by the Government on such terms and conditions as it may deem fit; 
      (b) No contract for acquisition or sale of immovable property or for the lease of any such 
property for a term exceeding fiv e years shall be made unless it is previously approved by the 
Government   
(c) The form and manner of executing contracts on behalf of the Board shall be such as may be 
prescribed by rules; 
 
CHAPTER - V 
WORKS AND SERVICES TO BE PROVIDED AT PORTS BY THE BOARD 
 
25. Powers of the Board to execute works and provide appliances. - (1) The Board may, 
subject to any other law for the time being in force, execute such works within or outside the limit s 
of ports and provide such appliances as it may deem necessary or expedient. 
(2) Such works and appliances may include,- 
      (a) for wharves, quays, docks, stages, jetties, piers, place of anchorage and other works within 
the port or port approaches or on the foreshore of the port or port approaches in the State, with al l 
such convenient arches, trams, landing places, stairs, fences, ro ads, bridges, tunnels and 
approaches, and buildings required for the residence of the employees of the Board as the Board 
may consider necessary; 
     (b) to buses, locomotives, railways, rolling stock, sheds, hotels, warehouses and other 
accommodation for passengers and goods and other appliances for carrying  passengers and for 
conveying, receiving and storing goods landed or to be shipped or otherwise;  
      (c) to moorings and cranes, scales and all other necessary means and appliances for loading 
and unloading of vessels; 
      (d) to dredging, reclaiming, excavating, enclosing and raising any part of the foreshore of the 
port or port approaches which may  be necessary for the execution of the works authorized by this 
Act or otherwise for the purposes of this Act; 
      (e) to such break water and other works as may be expedient for the protection of the port; 
     (f) to dredgers and other machines for cleaning, widening, deepening and  improving any 
portion of the port or port approaches or of the foreshore of the port or port approaches; 
     (g) to light-houses, light-ships, beacons, buoys, pilot boats and other appliances necessary for 
the safe navigation of the port and the port approaches in so far as it relates to State functions;  
 16
      (h) to vessels, tugs, boats, barges and launches and lighters for the use within the limits of 
the port or beyond those limits, whether in territorial waters or otherwise, for the purposes of towing 
or rendering assistance to any vessel whether entering or leaving  the port or bound elsewhere and 
for the purpose of saving or protecting life or property and for the purposes of  landing, shipping or 
transshipping passengers or goods under section 32; 
      (i) to sinking of tube well and equipment, maintenance and use  of boats, barges and other 
appliances for the purpose of the supply of water at the port; 
     (j) to engines and other appliances necessary for the extinguishing of fires; 
      (k) to lands abutting the sea coast including creeks; 
      (l) to ferry boats and other works and equipment appertaining to the running of ferry service  
in the State of Karnataka; 
    (m) to construction of models and plans for carrying out hydraulic studies; 
     (n) to dry docks, slipways, boat basins and work shops to carryout repairs or overhauling of 
vessels, tugs, boats,  machinery or other appliances; 
    (o) to initiate and develop plans and frame guide lines for the port sector in the state; 
      (p) to promote the use, development, and improvement of ports  in the state; 
   (q) to provide maintain and operate ports in the state; 
       (r) to provide and maintain adequate and efficient lighthouses beacons and other lights 
buoys and other navigational aids and services at such places as the board may deem appropriate; 
      (s) to regulate and control navigation within the limits of the port and the approaches to the  
ports in the state; 
      (t) to exercise licensing and regulatory functions in respect of port infrastructure and 
services; 
     (u) to exercise supervision and control over all port works in the state including those works 
contracted out to third parties; 
      (v) to make modifications and approve as required to the scale of rates for services provided 
by the board; 
      (w) to plan or provide or secure  the provision of a safe economical and efficient sea 
transport system for movement of goods and passengers. 
 Provided that, the Board shall ensure that security at port confirms the norms 
required under international ships and ports security (ISPS) code and also the compliance of 
security guidelines/instructions issued by Ministry of Home Affairs and Ministry of Shipping, 
from time to time.  
      (x) to furnish to the Government all information in respect to its property and activities i n 
such manner and at such times as the Government may require; 
      (y) to develop new minor ports in the State as per Indian Ports Act, 1908 with the approval of 
the Government; 
     (z) to provide  facilities and create Infrastructure for Ship Building,  Ship Breaking activities; 
(za) tourism development  works in the Karnataka coast; 
(zb) to maintain and regulate ferry services and Inland Water Transport System in 
Karnataka State; 
(zc) to carry out coastal protection works in Karnataka State; 
(zd) for construction and maintenance of fisheries harbours and create  Infrastructure 
required for fishing activities  in the State; 
         (ze)  to carryout beach nourishment in Karnataka  coast; 
 17
         (zf) without prejudice to the above, to provide or ensur e providing of such other services and 
other facilities as are in the opinion of the Board necessary for the operation of ports in the state.  
(3) The Government shall make separate budgetary provision for carrying out ferry services, 
coastal protection, f ishing harbour and any other service oriented works i

Excerpt shown. Open the full act in Lexace.

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