Government to bring 101 inland waterways under national network

NEW DELHI: Clearing the decks for port development and water transport, cabinet on Wednesday approved inclusion of 101 inland waterways to the national waterways network and gave in-principle nod to the Sagarmala project. Cabinet also approved setting up of a special purpose vehicle to provide efficient rail evacuation systems to major ports to enhance their handling capacity and efficiency.

Government wants to utilise the vast waterways network of the country to build a fuel-efficient and cost-saving mode of transportation and build an intermodal logistic supply chain. The development of waterways for navigation will also decongest rail and road network.

The cabinet decision to “enact the central legislation” with respect to the 101 inland waterways would give central government the authority to develop these rivers for navigation through dredging, terminal and barge construction etc. These rivers came under the jurisdiction of the respective state governments.

“It would positively contribute to the GDP by opening up business opportunities… Detailed business development studies are being carried out under the Jal Marg Vikas Project for identifying all business opportunities and quantifying anticipated investments and employment opportunities,” a press statement said.

In the past 30 years, only five waterways have been declared as National Waterways. Besides, the cabinet approved SPV funded by the 12 major ports (with 90% equity) and the Rail Vikas Nigam Limited would have an initial authorised capital of Rs 500 crore. The initial subscribed share capital would be Rs 100 crore.

The company will also raise resources from multilateral funding agencies and other financial institutions to finance port connectivity projects. The SPV will be manned by professionals with expertise on rail transport and port logistics.

Major Ports have identified a shelf of nearly 40 projects which includes the last-mile connectivity projects and internal port rail projects which would require an estimated investment of Rs 2,372 crore. The in-principle nod to Sagarmala project concept and institutional framework is aimed at port-led development through policy and institutional intervention, modernising port infrastructure and building efficient evacuation system.

The initial requirement for the implementation of projects in the initial phase of Sagarmala Project in 2015-16 is around Rs 692 crore. “Further requirement of funds will be finalised after completion of detailed master plan for coastal economic zones for future years,” a press statement said.

As part of the project the state governments will be suggested to set up state Sagarmala committee to be headed by the chief minister or minister-in-charge of ports with members from relevant departments and agencies.