News Brief
Economic Survey 2023: Government Recognises Cost Advantage Of Water Transport; Here’s How It Aims To Capitalise On It
- The Survey outlines the policy measures that seek to provide a boost to waterways infrastructure.
An inland shipping vessel on NW-2.
The Economic Survey highlights the progress of the PM Gati Shakti plan and its multiple engines – which includes the growth and transformation of the inland waterways systems.
India possesses abundant rivers, canals, and waterways that carry unrealised potential for the transportation of goods and passengers. The total navigable length of waterways in India is around 14,850 kilometres.
The Survey outlines the policy measures that seek to provide a boost to waterways infrastructure.
Among these are:
One, 106 new waterways declared as National Waterways (NW). This has taken the total number of NWs in the country to 111, under the National Waterways Act of 2016.
-Further, 26 of the waterways have been prioritised considering the viability of cargo movement, based on techno economic feasibility and Detailed Project Reports. Currently, 14 of these have been initiated for development activities.
-Additionally, to support and enhance the use of inland waterways, waterway usage charges levied by the Inland Waterways Authority of India (IWAI) on vessels moving on NWs were waived in July 2020, initially for a period of three years.
-The Survey also records that cargo movement on National Waterways achieved an all-time high of 108.8 million tonnes during Financial Year 2022, recording 30.1 per cent growth compared to the previous year.
Two, The Inland Vessels Bill 2021 was introduced which replaced the over 100 year-old Inland Vessels Act, 1917. The bill was passed by the Parliament in August 2021.
-Various sections of this Act came into force in the year 2022 to support improved navigations, connectivity, operations and management. The Act aims to bring uniformity in laws and regulations relating to inland waterways in the country.
-Now, with the act in place, State governments may declare by notification any inland water area as a “Zone” depending on the maximum significant wave height criteria as prescribed in the Act.
-Constitution of a Development Fund by the State Government to be utilised for meeting emergency preparedness, removal of unidentified obstruction and boosting development works of inland water navigations.
The uniform application of rules and regulations will ensure smooth, fast, and cost-effective trade and transport through inland vessels on the waterways.
The Economic Survey suggests that the government recognises the cost advantage of this transit mode and aims to further elevate inland water transport as a feasible mode for large-scale cargo and passenger movement across the country.
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