Business Line reported that upgradation of National Waterways and creation of a fund to help transport operators have been suggested to develop this low-cost mode of transport.

India has navigable inland waterways of almost 14,500 km of which 5,200 km of major rivers and 500 km of canals are suitable for mechanised craft.

According to Mr SS Mishra member of Inland Waterways Authority of India part of the fuel cess should be diverted for development of inland waterways transport.

Addressing the ‘Intermodal India’ event here, he said despite huge potential, IWT currently handles less than one per cent of total inland cargo transport.

Mr Mishra said that “The share of IWT in the transport sector in India is just 0.40%. While in countries like Netherlands, it is 42%. Logistics solutions is limited to rail and road in India.”

A report on multimodal transport prepared by consulting firm Deloitte said, development of IWT in India is still in its initial stages and requires significant Government funding. IWT projects involve comparatively lower investments both for creation and sustenance as compared to other modes of transport. IWAI is aiming to increase the share of IWT to three per cent in the next two to three years.

According to Deloitte, IWT has the potential to attract investments of over INR 30,710 crore (about USD 5.74 billion) in the next ten years.

Of this, new projects will account for INR 18,135 crore and remaining will be invested in ongoing projects. Private sector will bring in about 65% of the total investment.

Source - Business Line

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