LS passes Bill to develop 101 waterways

[VK Sharma]

LS passes Bill to develop 101 waterways

 

The Lok Sabha has passed the Bill to develop 101 waterways in the country, which is expected to facilitate low-cost river transportation.

 

"Make-in-India dream cannot be realised if logistics costs are not reduced. So waterways are being given priority. We want to work with state government support. We will work with cooperation of states," the Union Minister of Shipping, Mr Nitin Gadkari, said.

 

India lags behind Europe and China as far as use of waterways was concerned, he said. The Minister informed that national waterways would cut logistics costs, make industry competitive and help developing smart townships along the rivers.

 

He said the government was aiming to garner Rs 1 lakh crore through innovative methods, which includes Rs 50,000 crore from the World Bank, investment of profits of shipping PSUs into a subsidiary company, and obtaining dollar loans at cheaper rates, besides seeking funds from the Budget.

 

The Ministry has hired foreign consultants to seek technical expertise for construction of ports, he said.

 

Meanwhile, the Centre plans to bring in several changes in the existing shipping rules and introduce new ones to boost the industry, sources said.

 

Mr Gadkari said the high-priority agenda in the shipping sector the next year was the introduction of the new shipbuilding policy, which would give a major boost to the government’s "Make-in-India" initiative, while the country’s vast coastline would also witness major development projects.

 

The shipbuilding industry is a huge employment multiplier and as the Cabinet had approved the new comprehensive policy, manufacturing-led employment would be generated, he added.

 

It may be noted that the government had approved a proposal this month for financial assistance of 20 per cent for ships built in the country, and also a budgetary support of Rs 4,000 crore to the industry.

 

The government is also mulling setting up two new ports, one in Maharashtra and the other in Tamil Nadu in addition to the already approved Sagar port in West Bengal. Work on these ports would begin by March, Mr Gadkari said.

 

The government intends to revamp the Major Port Trusts Act, Merchant Shipping Act and do away with the Tariff Authority for Major Ports (TAMP) next year, he added.