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.
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.