In a special move aimed at promoting inland water transport, India’s top 12 major ports will create SPVs to develop 111 rivers across India, Union Minister Nitin Gadkari said.
Parliament in 2016 had given nod to convert 111 rivers across the country into National Waterways (NWs), in addition to existing 5 NWs, a move to boost movement of goods and passengers via rivers and expectedly reduce the transportation costs substantially.
“Given the vast potential of rivers for inland transport, we have decided that 12 major ports will constitute special purpose vehicles (SPVs) to develop rivers,” Shipping, Road Transport, Highways, Water Resources and Ganga Rejuvenation Minister Gadkari told PTI.
Gadkari said 111 rivers, which are to be developed as National Waterways, will be divided among these SPVs for development. “We have issued orders to divide rivers among ports. For example, Jawaharlal Nehru Port Trust (JNPT) will have Maharashtra and Goa rivers,” the minister said.
Gadkari also said the major ports which earn in dollars can take loans in dollar and develop the projects.
Five of the existing NWs include Allahabad-Haldia on Ganga (1,620 km), Brahmaputra’s Dhubri-Sadiya (891 km), West Coast Canal Kottapuram-Kollam (205 km), Kakinada-Puducherry canals (1,078 km) and East Coast Canal integrated with Brahmani river and Mahanadi delta rivers (588 km).
The minister said Rs 2,000 crore from a central fund will be used for development of the water transport, operationalising at least 10 of the 111 National Waterways this year.
The government has earlier approved allocation of 2.5 per cent of the Central Road Fund (CRF) for NWs that would result in about Rs 2,000 crore proceeds a year for their development.
