Work on to move cargo, people via 8 waterways

37 rivers to be covered in three years

The Inland Waterways Authority of India (IWAI) has started work on development of waterways on eight rivers across poll-bound Uttar Pradesh and Goa, besides Bihar and Assam.

Under the plan, 106 waterway projects would be implemented on rivers, barrages and creeks to ferry goods and passengers, which would help industry reduce logistics cost.

These inland waterways were declared national waterways by the central government in December 2015, expanding the list to 111. Minister of Shipping Nitin Gadkari has emphasised the need for transportation of goods via waterways. He had said transportation cost through waterways was approximately one-fourth compared to roads and railways.

Logistics cost is about 30 per cent of the expenditure for any industry and building a robust waterway network in the country would prove to be a game changer in logistics, a government official told Business Standard.

According to a blueprint drafted by IWAI, the government authority would engage with the states for the development of waterways under the Atal Mission for Rejuvenation and Urban Transformation.

According to a shipping ministry official, IWAI would conduct a detailed project study about the prospects of transportation of goods through these gateways. Some of the proposals includes transportation of cars, fertilisers and palm oil through the Indo-Bangladesh Protocol route.

The waterways development would be carried out in a phased manner and 37 rivers would be covered in two to three years, the official said.

Work has started on eight rivers, including Barak (Assam), Ghaghra (UP), Ghandak (Bihar) and Zuari and Mandovi in Goa.

According to official estimates, fairway development or channel development would attract an investment of Rs 2 crore a kilometer, whereas terminal development and handling equipment are expected to cost Rs 25-30 crore, excluding the cost of land.

In the second phase, coastal creeks and tidal reaches in 46 rivers would be covered.

Development of 52 waterways would turn the focus to remote hilly areas, the northeastern states and Jammu & Kashmir. Feasibility studies have been done for 44 projects, survey are underway for five projects and three are awaiting security clearance.

Work on these projects will not start immediately and was expected to take some time, the official added.

For execution, IWAI is expected to borrow funds from multilateral funding agencies such as the World Bank and Asian Development Bank.