Work starts on eight National Waterways

The Inland Waterways Authority of India (IWAI) said it will call on banks to finance private sector players undertaking its water transport projects.

Financing and funding for Operation and Maintenance of Inland Water Transport (IWT) assets is a challenge for shippers, vessel operators and asset management firms as the banking sector is not yet ready with any customized financing option for the sector.

Addressing the day-long Stakeholders Conference on Emerging Business opportunities in Inland Water Transport Sector on 11 May 2018 at New Delhi, the IWAI chairperson Nutan Guha Biswas said that the banking finance is needed for the emerging business opportunities for private players.

Biswas said that lots of investment are being done to develop the waterway sector which is going to complement railways and roadways.

“We have started working on eight new National Waterways, in addition to five others on which work had been on in full swing,” she said at the IWAI conference.

Rajat Sachar, Advisor in the Ministry of Shipping, has sought for policy changes to make Inland water transport a vibrant sector with the support of private sector.

Referring to the Jal Marg Vikas Project being implemented between Varanasi and Haldia on river Ganga, he said the government has decided to invest Rs.5,369 crore on One National Waterway.

He also appealed to the financial institutions to offer financial products for private sector investment in IWT sector where annual government funding has increased by 12 times in the last four years.

The Bank of Baroda CEO & MD P S Jayakumar responded, assuring that banks can provide flexible scheme for financing, like providing the moratorium period for loans on existing as well as the new projects.

Issue of bonds can be the alternative source for long-term lending to ship-owners, he added.

The Government is developing National Waterways as a key transport intervention, as part of an integrated transport network strategy, which will help correct the transport modal mix that imposes huge logistics costs on the Indian economy.

At present the cost of logistics in India, at 15% of GDP, are about twice those in the United States. fii-news.com