Subsidies for goods movement via inland waterways in works
inland waterways, as part of its efforts to promote greater use of the country's network of rivers, canals and backwaters to move cargo, officials in the know said.
The government is readying a scheme to incentivise parcel movement on the Ganga, Brahmaputra and Barak rivers in the first phase. A discount of up to 35% on the invoice value for transporting goods is expected to be offered by a subsidiary of state-run Shipping Corporation of India, with the government reimbursing the company for the loss of revenue, they said.
«This scheme has been designed after feedback from stakeholders that recently used national waterways 1, 2 and 16 to transport goods,» one of the officials said. The incentive will make waterway movement on those routes comparable to road transport, he added.
The National Waterway 1 (NW1) is India's longest waterway, spanning 1,620 kilometres across Uttar Pradesh, Bihar, Jharkhand and West Bengal on the Ganga, Bhagirathi and Hooghly rivers. The NW2 is the second longest, covering 891 kms on the Brahmaputra River. Use of the waterways for cargo movement will help decongest rail and road routes. It is also a cleaner and often cheaper mode than road transport.
Under the plan being finalised, Inland & Coastal Shipping Ltd (ICSL), a Shipping Corp unit, will be running scheduled services on these identified waterways. Private players can book space on its ships, similar to how parcel vans are leased out on the Indian Railways. The incentive will be given to ICSL after the transport of goods has been
