Shipping ministry seeks Rs 23.5 billion to fund inland waterway projects

The Union Shipping Ministry has sought about Rs 23.5 billion in the budgetary allocation from the finance ministry — an increase of 25 per over last year. This is to primarily fund the inland waterway projects.

“A major share of the allocation would be spent on the inland waterways programme as the government aims to project waterways as a cleaner and efficient mode of transportation,” a senior official of the ministry said.

The remaining would be spent on the Sagarmala programme to promote port-led direct and indirect development, provide infrastructure for quick transportation of goods, efficiently and cost-effectively.

The allocation for FY19 was Rs 18.81 billion. Of this, nearly one-fourth or Rs 5.08 billion was earmarked for implementation of such inland waterway projects.

In FY18, the allocation was Rs 17.73 billion, and that of waterways was Rs 3.51 billion. While the apportionment was reduced to Rs 15.68 billion in the Revised Estimates, the allocation for the waterways was increased to Rs 4.77 billion.

Also, after the amendments to the Central Road Fund Act in December 2017, there was an increase in the share of national waterways by 2.5%. In December 2015, the Union Cabinet approved central legislation to declare 111 inland waterways as national waterways, which includes five existing waterways.

The declaration was expected to enable the Inland Waterways Authority of India (IWAI) to develop the feasible stretches for shipping and navigation purposes. 

The right over the use of water, river bed and the annexed land will remain with the state government. According to industry estimates, inland water transport is considered the most cost effective and economical with respect to fuel efficiency.

A litre of fuel can move 105 tonnes by inland water transport for a kilometre, whereas the same can move only 85 tonnes by rail and 24 tonnes by road.