LOK SABHA SECRETARIAT

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MEMBERS’ REFERENCE SERVICE

REFERENCE NOTE . No.35/RN/Ref./October/2015

For the use of Members of Parliament Not for Publication

DEVELOPMENT OF WATERWAYS IN INDIA

------------------------------------------------------------------------------------------------------------------------------- The reference material is for personal use of the Members in the discharge of their Parliamentary duties, and is not for publication. This Service is not to be quoted as the source of the information as it is based on the sources indicated at the end/in the text. This Service does not accept any responsibility for the accuracy or veracity of the information or views contained in the note/collection.

DEVELOPMENT OF WATERWAYS IN INDIA

INTRODUCTION

India is endowed with a variety of navigable waterways comprising of river systems,

canals, back waters, creeks, and tidal inlets1 extend to about 14,500 km including about 5600

km for navigation by mechanized vessels2. The navigable waterways are confined to a few

States and location specific. The Inland Water Transport (IWT) is functionally important in

regions covered by the Brahmputra and the Ganges in the North-East and Eastern parts of the

country, Kerala, Goa and in the deltas of the rivers of Krishna and Godavari. IWT has an

important role to play in many parts of the country since it offers an economic, energy efficient,

employment intensive and almost pollutant free mode of transport service3.

BENEFITS OF INLAND WATER TRANSPORT (IWT)

Inland Water Transport (IWT) is world over recognised as a fuel efficient, cost effective

and an environment friendly mode of transport, especially for bulk goods, hazardous goods and

over dimensional cargo. The enormous socio-economic and environmental advantages of IWT

mode of transportation over other modes such as rail and road can be seen from the following4:-

(i) Cost savings :

1 HP moves 150 kg on road, 500 kg on rail and 4000 kg on water.

1 Litre of fuel moves 24 tonne kilometer on road, 85 on rail and 105 on IWT.

Cost of developing waterways is much lower than rail & road.

Reduces transportation and transition losses.

Inter Modal Comparative Operating Costs Rs/TKM

(ii) Environment friendly:

Least fuel consumption per tonne – km.

CO2 emission is 50 percent that of trucks.

1 India, Ministry of Road Transport and Highways, Statistics of Inland Water Transport 2013-14, p. (i)

2 India, Ministry of Shipping, Annual Report 2014-15, p. 58

3 Op.cit., Statistics of Inland Water Transport 2013-14, p.(i)

4 PIB, dated 26.3.2015

Mode VOC/Freight (Rs/TKM)

Taxes Total Rs/ TKM

Railways 1.36 3.71% 1.41

Highway 2.50 3.09% 2.58

IWT 1.06 NIL 1.06

Source : Railways – Ministry of Railways, Road – TTSS, IWT – IWAI

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Negligible land requirement.

Safe mode for hazardous and over dimensional cargo. (iii) Supplementary mode:

Reduces pressure on road and rail.

Reduces congestion and accidents on road.

INLAND WATERWAYS AUTHORITY OF INDIA (IWAI)

Before 1950, there was no proper institutional set up for the development of IWT. A

beginning was made during the First Plan when the Ganga-Brahmaputra Water Transport Board

was set up as a Joint Venture of the Central Government and State Governments of Uttar

Pradesh, Bihar, West Bengal and Assam. Subsequently, the Government of India established

the Inland Water Transport Directorate in the then Ministry of Shipping and Transport in 1965.

The Ganga-Brahmaputra Water Transport Board was merged with the IWT Directorate in 1967,

and the Central Inland Water Transport Corporation Ltd. (CIWTC) was set up at Kolkata5.

In pursuance of the recommendations of the National Transport Policy Committee

(NTPC), the Inland Waterways Authority of India (IWAI) was set up on 27 October 1986 by an

Act of Parliament. 'The Inland Waterways Authority of India Act, 1985' was also enacted for the

development, maintenance and regulation of National Waterways for shipping and navigation in

the country. Important functions of the IWAI are6:

i). Conducting surveys and investigations and techno-economic feasibility for developing inland water transport mode;

ii). Development and regulation of National Waterways for shipping and navigation by providing conservancy measures, river training works, setting up infrastructural facilities etc.;

iii). Other connected/subsidiary functions include regulation of traffic, coordination with other modes of transport for movement on the National Waterways maintenance of Pilot age etc;

iv). To assist and advise Central and State Government on matters relating to Inland Water Transport.

Plan-wise Allocation: The financial performance of IWAI has been in ascending order over the

years. While the expenditure level of IWAI was about `35 crore, during the entire Eighth Plan, it

rose to `151 crore during Ninth Plan, `385 crore during the Tenth Plan, to `560 crore during

5 Op.cit., Statistics of Inland Water Transport 2013-14, p.(i)

6 Ibid, p. (ii)

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Eleventh Plan and further during the Twelfth Plan outlay is `1500 crore for the IWT sector. The

Plan allocation for IWAI during 2015-16 is `205.72 crore7.

DEVELOPMENT OF NATIONAL WATERWAYS Out of about 5600 km of waterways for navigation, 4382 km of inland waterways have

been declared as National Waterways (NWs)8. The development and regulation of waterways

which are not declared as NWs remain under the domain of the respective State Government.

To develop any waterway as NW, it is required to be declared as a National Waterway by an Act

of Parliament9. In view of the large network of Inland Waterways in India, there is vast potential

in IWT to act as an alternate and supplementary mode of transportation. However, so far, in the

last 30 years, only the following five waterways have been declared as National Waterways10:

National Waterways System

NW Waterway Stretch Length (Km.) Declared in Year

NW-1 Ganga-Bhagirathi-Hooghly river system (Allahabad-Haldia) in the States of Uttar Pradesh, Bihar, Jharkhand and West Bengal

1620 km 1986

NW-2 River Brahmaputra (Dhubri-Sadiya) in the State of Assam

891 1988

NW-3 West Coast Canal (Kottapuram-Kollam) along with Udyogmandal and Champakara Canals – in the State of Kerala

205 1993

NW-4 Kakinada- Puducherry canals along with Godavari and Krishna rivers– in the States of Andhra Pradesh, Tamil Nadu and Union territory of Puducherry

1078 2008

NW-5 East Coast Canal integrated with Brahmani river and Mahanadi delta rivers in the States of West Bengal and Odisha

588 2008

7 Rajya Sabha, Department-Related Parliamentary Standing Committee on Transport, Tourism and Culture, Report No. 221,

April 2015, p. 23 8 Lok Sabha Unstarred Question No. 1837, dated 30.7.2015

9 Op.cit., Annual Report, p. 58

10 PIB, dated 26.3.2015

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Out of these five NWs, first three Waterways have already been substantially developed

and made operational for movement of cargo and passenger vessels11.

Criteria for Declaration of National Waterway12

It should possess capability of navigation by mechanically propelled vessels of minimum 300 tonnes (DWT) capacity (45m x 8m x1.2m);

It should have a fairway of minimum 40m wide channel with 1.4m depth in case of rivers and minimum 30m wide channel with 1.8m depth in case of canals. Exception may be given in case of irrigation-cum-navigation canals based on request of the concerned State Government in order to safeguard the interest of irrigation;

It should be a continuous stretch of minimum 50 kms; the only exception to be made to waterway length is for urban conglomerations and intra-port traffic; and

It should pass through and serve the interest of more than one States or connect a vast and prosperous hinterland and major port, or either pass through or connect a strategic region where development of navigations is considered necessary to provide logistic support for economic development or national security, or connect place not served by any other mode of transport.

The Centre had also cleared the Barak Waterway proposal, making it the Sixth National

Waterway covering a stretch of 121 km. The first phase of the project is targeted for completion

by 2016-17. The Barak being the second major river in Assam after the Brahmaputra,

developing it as an ideal waterway will result in unified development of the waterways for

shipping, navigation and transportation of cargo to the North-east, especially in Assam,

Nagaland, Mizoram, Tripura and Arunanchal Pradesh13.

The total revenue earned for the first three NWs during the last three years and current

year, State-wise are as follows14:

Total Revenue Earned (Amount in Rs)

Year U.P. Bihar West Bengal Assam Kerala Total

2012- 13 2,59,707 43,87,229 2,66,82,031 1,88,863 13,17,218 3,28,41,011

2013- 14 69,36,823 1,97,85,924 1,94,59,145 26,03,335 69,78,461 5,57,63,688

2014- 15 2,08,19,521 1,15,07,288 2,44,14,444 19,20,107 18,27,612 6,04,88,972

2015- 16 * 50,30,420 78,679 47,81,119 35,996 40,892 99,67,106 Note - * As on 30.6.2015

11

Lok Sabha Unstarred Question No. 1837 dated 30.7.2015 12

Op.cit., Statistics of Inland Water Transport 2013-14, p.(vi) 13

The Assam Tribune dated 28.1.2015 14

Lok Sabha Unstarred Question No. 1837, dated 30.7.2015

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Navigable Waterways & Infrastructure: Length of Waterways along with its navigable length

is an indicator of inland water potential of a State. Table 1 gives Total and Navigable length of

Waterways reported across States/UTs. It is observed that the maximum length of waterways is

in the State of Assam with 5290 kms followed by West Bengal with 4741 kms. However, the

ratio of the navigable length to the total length of the river/canal better reflects the potential for

IWT15. Total and Navigable length of Waterways reported across States/UTs are given in the

following table:

Total and Navigable Length of Waterways in different States –2013-14 (In kms) *

Cargo Movement on Major Waterways: The total tonnage and nature of goods transported

through Inland Waterways in National Waterways- 1, 2 & 3 and Goa & Mumbai Waterways

during the last three years and current year is enclosed as Annexure-I.

THE NATIONAL WATERWAYS BILL, 2015

The Inland Waterways mode of transportation has immense potential for domestic cargo

transportation as well as for cruise, tourism and passenger traffic. Its systematic development

will open up progressive economic and transport opportunities in the country. Since the Inland

Waterways is lagging behind road and rail sectors in the country, the Central Government has

evolved a policy for integrated development of Inland Waterways throughout the country by a

15

Ibid, p. (iii)

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standalone legislation in terms of Entry 24 of the Union List of the Seventh Schedule to the

Constitution. The enactments by which the existing National Waterways have been declared as

National Waterways are also proposed to be covered under the proposed legislation, namely,

the National Waterways Bill, 2015, by repealing them with a suitable saving clause16.

The National Waterways Bill, 2015 was introduced in the Lok Sabha on 5 May 2015. The

Bill seeks to make provisions for the existing five National Waterways and declaration of 101

new Inland Waterways spread among 24 States to be National Waterways and also to provide

for the regulation and development of the said Waterways for the purpose of shipping and

navigation and for matters connected therewith or incidental thereto17. The Bill is for launching

water transport in 101 rivers, connecting 8,200 km, is under consideration in the Parliament18.

The list of proposed new National Waterways are enclosed as Annexure-II.

The Bill was referred to the Department-related Parliamentary Standing Committee on

Transport, Tourism and Culture on 21 May 2015 for examination and report thereon within a

period of three months. The Committee discussed the provisions of the Bill with various

Ministries and also heard the views of the major stakeholders of the Inland Waterways such as

the National Thermal Power Corporation Ltd.; Indian Ports Association; and Indian Chamber of

Commerce on the Bill. The States being major stakeholders, the Committee also sought

comments from the Chief Secretaries of 24 States to ascertain their views on the Bill19.

The Committee submitted its report on 12 August 2015 in Rajya Sabha and observed

that the proposed Bill seeks to empower the Central Government to develop our rivers for water

transport which is safer, most economical and environment-friendly as compared to the existing

modes. But this is Constitutionally possible only when our rivers sought to be developed for this

purpose are declared as National Waterways with the approval of the Parliament. As the

processes of rivers development can be taken up only thereafter, the passage of this Bill,

therefore, brooks no delay. There appears to be a general consensus among the concerned

Union Ministries and Departments as also amongst most of the States. The scheme of division

of powers in respect of rivers between three Lists in our Constitution is very thin, therefore, it

16

The National Waterways Bill, 2015 p. 18 As Introduced in Lok Sabha 17

PIB, dated 26.3.2015 18

The Hindu, New Delhi, dated 27.9.2015 19

Rajya Sabha, Department-Related Parliamentary Standing Committee on Transport, Tourism and Culture, Report No. 223, p. 1

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requires a very cautious and careful approach in this matter20.

The Cabinet's approval for a Central law that would declare 101 stretches of rivers as

"National Waterways" is significant. That is primarily because it appears to be part of a larger

plan to create a much-needed interconnected rail-road-waterways logistics system. Such an

integrated inter-modal system for haulage of goods and passengers is essential to ease growing

pressure on the over-burdened rail and road networks. The proposed Central law is expected to

stave off disputes with states, given that water is a State subject, while the development and

regulation of shipping and navigation comes under the jurisdiction of the Union Government21.

The creation of a logistic supply chain with intermodal connectivity would positively

contribute to the GDP by opening up business opportunities in the area of dredging, barge

construction, barge operation, barge repair facilities, terminal construction, terminal operation,

storage facilities, providing modern aids to day and night navigation, tourist cruise, consultancy,

training of manpower for manning the barges, hydrographic survey, etc. Investment in all these

business areas will create numerous opportunities for employment and economic development

and reduce the pressure from the already over loaded, congested and costlier other surface

modes of transport22.

TARGET FOR THE TWELFTH FIVE YEAR PLAN AND FUTURE PROJECTION

With a meager share of 0.4 per cent in the total cargo handled in the country Inland

Waterways is an under developed mode of transportation in India. At present the share of IWT

in terms of tonne-km is about 5 billion tonne kilometer (btkm) which is less than 0.5 per cent of

total inland cargo transportation. Given the distinct advantages of promoting IWT, Twelfth Plan

target to at least triple the tonne-km to 15 btkm and increase the share of IWT in transport to 1-

1.5 per cent of total inland cargo transportation23.

Future Projections: Provided that the IWT infrastructure develops sufficiently, the cargo

potential on the existing five National Waterways is projected to increase to about 47 MMT by

2019-20 and to 92 MMT by 2031-32. In order to support the cargo growth expected by the end

of Fifteenth Plan, an investment of about `640 billion is projected for development of IWT, with

20

Ibid, pp. 21-22 21

The Business Standard, New Delhi, dated 3.4.2015 22

PIB dated 26.3.2015 23

India, Planning Commission, Twelfth Five Year Plan, Vol. II, pp. 231, 235

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about ` 300 billion contributed by the Government and the rest by the Private Sector24.

Investment requirements in IWT and sources of funding are indicated below:

Investment requirements in IWT and Sources of Funding25

(`billion)

PROBLEMS / BOTTLENECKS

Due to very little investment made so far on development of waterways compared

globally and to the road and rail modes in the country, Inland Water Transport (IWT) mode

remains under developed and its share in overall internal cargo transport remains abysmally

low. IWT sector presently has a meagre modal share of 0.4 per cent in India compared to 42

per cent in Netherlands, 8.7 per cent in China and over 8 per cent in USA26. This is partly

because of the inability to shift cargo between modes of transport without disruption. The

seasonality of water flows in many of the monsoon-fed river systems will pose the most

formidable hurdle, particularly for moving around high-capacity barges. It may require extensive

dredging besides construction of barrages to hold part of the surplus monsoon water for release

during the lean season to maintain the minimum water depth and flow needed for navigation.

Higher water salinity, especially in the coastal regions and estuaries, and constant inflow of silt

in the rivers can also be problematic. Besides, to be viable, the water transport projects will

24

India Transport Report- Moving India to 2022, Vol. I, Executive Summary, p. 70 (www.planningcommission.gov.in) 25

India, Planning Commission, National Transport Development Policy Committee, Ports and Shipping, 2014, p. 325 26

Ibid

45

185 185 223

638

12th Plan 2012-17 13th Plan 2017-22 14th Plan 2022-27 15th Plan 2027-32 Total

Budgetary Support

Private Sector

33

49 54 54

46 51 67

47

46

53

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need to have adequate and assured two-way commodity traffic. Such traffic, notably in bulk

goods, like coal, minerals, foodgrain and fertiliser, is usually unidirectional, requiring the vessels

to return empty or under-loaded. This affects the profitability of these ventures. The government

should keep these problems in mind as it moves ahead with developing this vital infrastructure27.

CONCLUSION

The primary requirement for making water transport commercially viable is development

of IWT infrastructure (fairway, terminals and navigation aids) and at the same time creating an

enabling environment for augmentation of IWT fleet, primarily by the private sector28. Hence it is

necessary that quantum jump in public investment is made to develop IWT sector if the wish to

utilize the potential of this fuel efficient, cost effective and environment friendly mode of

transport, since by not using it to its potential the country is paying price in terms of lost

opportunity cost29. Keeping in view the urgent need for a supplementary alternative mode of

transport on waterways, such a long waiting period needs to be curtailed. One way of reducing

this time period is to declare all the identified waterways as National Waterways through one

legislation and enable the Government to undertake development as and when the need arises

and the preparatory work and funding tie up is complete. On declaration of a waterway as a NW,

development and regulation for Shipping and Navigation by mechanically propelled vessels

come under the jurisdiction of the Central Government. However, rights over the usage of

water, ownership of appurtenant land, minerals, metals, sand etc. continue to be with the State

Government30.

An optimal mix of road, rail and inland water transport will provide an efficient transport

infrastructure with mobility, flexibility and cost effectiveness. The IWT strategy aims at

generating a more pro-active role by various agencies and the Government as a provider,

facilitator and regulator and, at the same time, offer various concessions to the private sector for

their effective participation by way of investment for creation of enhanced IWT infrastructure and

fleet operations31.

27

Business Standard, New Delhi, dated 3.4.2015 28

Op.cit., Annual Report 2014-15, p. 58 29

India, Ministry of Shipping, Maritime Agenda: 2010-2020, p. 413 30

PIB, dated 26.3.2015 31

www.iwai.nic.in

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Annexure-I

INLAND WATERWAYS AUTHORITY OF INDIA32

CARGO MOVEMENT On National Waterways-1, 2 & 3, Goa and Mumbai Waterways

STRETCH Unit

2012-13 2013-14 2014-15 2015-16 Upto July, 2015Type of cargo moved

National Waterway - 1

MT 27,16,436 33,49,138

41,23,236

9,08,219 Cement, Fly Ash, Iron Ore,Iron Ore Fines, Coal, Steel Shed, Tyres, Iron fines, Iron Ingots, Galvanized Steel Plain Sheet,Stone Chips, Furnace oil, HF HSD, Lube Oil, Boulder, Pulses, Aluminium block, Sand , Clips, Ship block, Log, Pulses, Manganese Ore, Petroleum Coke, Cooking coal, Rock Phosphate,Timber, Peas, Slag oil,Non cooking coal, ODC & Etc.

National Waterway - 2

MT

24,26,804

4,93,414

5,19,722 1,92,441 Bamboo, Bamboo products, Cement, Building material, fertilizer, Food grains, Milk & other essential comodities etc.

National Waterway - 3

MT

12,36,403

10,66,006 9,65,246 3,11,617 Phosphoric Acid, Sulphur, Zinc, Furnace oil, Rock Phosphate, Various commodities in containers, Furnace oil-bunkering, POL(bunkering to ships), Potable water, Lime shell with clay and other impurties, Liquid Effluent.

Total of National Waterways

MT 63,79,642 49,08,558 56,08,204 14,12,277

The GOA Waterways

MT

75,82,266

10,03,364 9,76,987

- Iron ore, iron ore pellets, coal and others.

Mumbai Waterways (Dharamtar creek)

MT

97,22,819 1,01,78,956 2,25,44,335 -

Coal, cement, bauxite, iron ore pellets, stone, lime stone & clinker etc.

Grand Total

MT 2,36,84,728 1,60,90,878 2,91,29,526 14,12,277

Note: 1. These figures are collected by IWAI field offices from IWT operators. 2. Average IWT distance of 50 Km in Goa and 54 km in Mumbai Waterways considered

32

Lok Sabha Unstarred Question No. 4000, dated 138.2015

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Annexure-II

List of 101 New Waterways proposed for declaration as National Waterways33

33

www.iwai.nic.in

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