New Delhi, May 24 (IANS) The central government has decided to allocate 2.5 per cent of Central Road Fund (CRF) proceeds for the development and maintenance of national waterways (NWs).
The Union cabinet decision on Wednesday would provide approximately Rs 2,000 crore per annum for the development and maintenance of national waterways at the existing rates of duties funding the Central Road Fund (CRF).
According to the Union cabinet, the proposal to amend the Central Road Fund Act, 2000, was jointly mooted by the Ministry of Shipping and the Ministry of Road Transport and Highways (MoRTH).
Subsequently, the Central Road Fund (Amendment) Bill, 2017, would be moved by the Ministry of Road Transport and Highways in the ensuing monsoon session of Parliament.
"The cabinet has also directed that while implementing viable national waterways projects, all such components that can be done on PPP (public private partnership) basis and government funding may be used only if private investment is not forthcoming for any component," the statement said.
"The arrangement approved by the cabinet; would make available adequate and sustainable source of funding for NWs through institutional means of CRF."
The statement pointed out that the move will promote inland water transport sector as a cost effective, logistically efficient and environment friendly sector.
Estimates show that a standard 2,000 DWT vessel has the potential to transport a cargo weight equivalent of "125 truck loads" or "almost one complete train rake (40 rail wagons) load".
The Inland Waterways Authority of India (IWAI) has estimated that approximately Rs 25,000 crore would be required for development of identified national waterways projects till 2022-23.
Currently, construction of multi-modal terminals, new navigation lock, river information system, development of fairway have commenced under the Jal Marg Vikas Project being implemented on NW-1 on the Ganga river.
"IWAI also has planned to undertake work on the development of 24 NWs during the next three years," the statement added.
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