Ministry of Shipping waives waterways usage charges to promote inland water transport
Jul 24, 2020
New Delhi [India], July 24 : The Ministry of Shipping on Friday decided to waive waterway usage charges with immediate effect considering the Government of India's vision to promote inland waterways as a supplementary, eco-friendly and cheaper mode of transport. The charges have been waived initially for three years.
Union Minister of State for Shipping (Independent Charge) Mansukh Mandaviya said that currently, only 2 per cent of total cargo traffic moves through waterways. The decision of waiving waterway charges will attract the industries to use the national waterways for their logistical needs. As the mode of transport is eco-friendly and cheaper, it will not only reduce the burden on other transport modes but also promote the ease of doing business, the Minister added.
"Waterways usage charge was applicable to the use of all the national waterways by vessels. It was a hindrance in the administration of traffic movement and collection of traffic data. Presently, Inland Waterways Authority of India (IWAI) levies the waterway usage charges at a rate of Rs 0.02 per gross registered tonnage (GRT) per kilometre for plying of Inland cargo vessels and Rs. 0.05 per gross registered tonnage (GRT) per kilometre for plying of Cruise vessels on national waterways," the Ministry of Shipping said in an official release.
The decision is estimated to increase the inland waterway traffic movement to 110 MMT in 2022-23 from 72 MMT in 2019-20.
It will benefit the economic activities and development in the region, the Ministry added.
