India govt waives inland waterway usage charge

India today decided to waive charge of inland waterway usage with immediate effect in a bid to promote it as a means of cheaper and eco-friendly mode of transport.

The decision was taken "considering the government of India's vision to promote inland waterways as a supplementary, eco-friendly and cheaper mode of transport," Indian Shipping Ministry said in a statement, according to our New Delhi correspondent.

It has been decided to waive the user charges initially for three years, reports our New Delhi correspondent.

Shipping Minister Mansukh Mandaviya said that currently only two per cent of India's total cargo traffic moves through waterways.

The decision is estimated to increase the inland waterway traffic movement to 110 million tonnes in 2022-23 from 72 million tonnes in 2019-20, according to the Shipping Ministry.

The decision to waive 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, Mandaviya said.

Water usage charge was applicable on use of all the national waterways by vessels and had been "a hindrance in administration of traffic movement and collection of traffic data," the Ministry said.

The Inland Waterways Authority of India (IWAI) levies the waterway usage charges at a rate of Rs 0.02 per gross registered tonnage (GRT) per kilometer for plying of Inland cargo vessels and Rs 0.05 per gross registered tonnage (GRT) per kilometer for plying of cruise vessels on national waterways.