SUBSIDIES FOR GOODS MOVEMENT VIA INLAND WATERWAYS IN WORKS

Why in the news?

The Indian government intends to provide subsidies, providing a maximum 35% reduction on the invoice value for the transportation of commodities, to encourage the flow of goods across inland waterways.

SUBSIDIES FOR GOODS MOVEMENT VIA INLAND WATERWAYS IN WORKS - UPSC

Key Details

  • Subsidy Scheme: To encourage freight transportation on National Waterways 1, 2, and 16, which traverse large portions of Uttar Pradesh, Bihar, Jharkhand, West Bengal, and Assam, the government intends to provide financial incentives. A division of the Shipping Corporation of India (SCI) would oversee the reductions.
  • Overview of Inland Waterways: Rivers, canals, and backwaters are examples of navigable inland waterways that are used for cargo transportation. They are an affordable and ecologically beneficial form of transportation.
  • National canal 1 (NW1): Stretching 1,620 km along the Ganga-Bhagirathi-Hooghly river system, NW1 connects Prayagraj, Uttar Pradesh, with Haldia, West Bengal. It is the longest canal in India. 
Maritime India Vision 2047

  • The Indian government’s strategic strategy, aims to raise the amount of cargo moved by waterways to 500 million tonnes annually by 2047.
  • It is a ten-year maritime sector roadmap unveiled by the Prime Minister during the Maritime India Summit in November 2020.
  • It will replace the Sagarmala initiative and intends to improve waterways, stimulate the shipbuilding sector, and promote cruise tourism in India.

Nationa Waterway

  • The National Waterways Act went into effect in 2016. It suggested 106 new National Waterways and merged five previous Acts that established the five National Waterways. As a result, IWAI discovered 106 additional waterways and notified the MoS. In this regard, the National Waterways Act, 2016 was published in the Gazette of India, Extraordinary, Part II, Section I dated March 26, 2016, as Act No. 17 of 2016.
  • In 1986, the Government of India established the Inland Waterways Authority of India (IWAI) to regulate and develop inland waterways for navigation and shipping.
  • Currently, 13 of the 111 National Waterways proclaimed under the National Waterways Act of 2016 are active for shipping and navigation, with cargo and passenger vessels passing on them.