The working group report

4.6.4 Shortage of IWT Vessels

4.6.4.1 West Bengal- Bangladesh- Assam areas have huge geographical spread. In these parts, IWT sector is very important. Therefore, development of IWT sector in these parts of India / Bangladesh must be given high priority during 11^th five year plan.

4.6.4.2 Despite degeneration of IWT sector all over India, the sector has remained important in these parts as a result of which, there still are some IWT operators in these parts. These operators own a number of inland vessels. These are: Central Inland Water Transport Corporation (CIWTC), West Bengal Surface Transport Corporation (WBSTC), Vivada Inland Waterways, and Eastern Navigation in West Bengal and Inland Water Transport Directorate of Govt of Asssam (IWTDA). Besides, there are a few small operators who own one or two vessels. CIWTC is a public sector operator under Department of Shipping, Govt of India, WBSTC is under Govt of West Bengal and IWTDA is under Govt of Assam.

4.6.4.3 CIWTC was the main operator on this route. It owned 20 tugs, 16 self propelled crafts, 3 oil tankers, 58 dumb barges and 4 deck loaders. However, more than 50% of their vessels are out of order and need major repairs. The organisation has leased out 13 of their vessels on `as is where is’ basis to private operators. CIWTC has been a loss making Corporation since its inception. The Government has recently decided to disinvest it and the process for the same is underway. Thus the biggest IWT operator of this region is going to be absent in the 11^th Plan and beyond.

4.6.4.4 IWT Directorate of Assam possess different types of vessels and pontoons totaling to 227. However, out of these, only 60 vessels are in proper condition and in operation. This fleet of 60 vessels is providing ferry services (74 in number) on the rivers Brahmaputra, Barak and their tributaries. 50 of these services are in Brahmaputra valley and 24 in Barak Valley. The share of IWTDA in transportation of cargo is not significant. Similarly WBSTC also have a big fleet of inland vessels but all of these are passengers vessels.

4.6.4.5 Vivada Inland Waterways have 9 self propelled cargo vessels, 2 dumb barges, 1 tug, 1 tourism launch for luxury cruise and 1 ro-ro vessel. They have also taken on lease two oil tankers from CIWTC and are running these for transportation of NRL’s POL cargo from Silghat to Kolkata. Apart from these, IWAI has acquired one POL and one container vessel for NW-2.

4.6.4.6 The cargo movement from India to Bangladesh has increased many folds mainly on account of enhanced export of fly ash, slag and gypsum for cement factories in Bangladesh. Most of this cargo is however transported in Bangladesh vessels and despite proviso of 50:50 cargo sharing in the Protocol, share of Indian vessels in IWT inter- country trade is insignificant. All of Bangladeshi vessels come from their private sector and role of their public sector operator, BIWTC has practically been ‘Nil’.

4.6.4.7 Some of the main reasons for predominance of Bangladesh vessels for movement of cargo in IWT inter- country trade are the following:

i) Reduction in fleet size of CIWTC vessels due to (a) their non availability on account of breakdown, lack of preventive maintenance etc earlier and now (b) disinvestment of CIWTC: leading to the role of CIWTC being reduced to ‘Zero’.

ii) Indian private operators are not able to compete with Bangladesh private operators since cost of their vessels/ operation is significantly lower on account of following:-

a) Lower diesel cost in Bangladesh (about Rs. 23 per liter in Bangladesh and Rs. 34 per liter in India)

b) Higher manpower cost in India

c) Lower power to load ratio of Bangladeshi vessels

d) Lower capital cost of Bangladesh vessel vis-à-vis Indian vessels due to lower construction and safety standards adopted in Bangladesh, etc

4.6.4.8 As mentioned earlier, the IWT movement on Protocol routes is increasing significantly. With the IWAI plan of making three existing National Waterways fully functional in about two years time and some recent developments (such as interest shown by BK group of industries and Farakka NTPC power plant, declaration of Barak river as national waterway etc) the IWT movement between Haldia/ Kolkata and Brahmaputra/ Barak/ Bangladesh as well as intra movement in Brahmaputra and Barak valleys is going to be increased substantially. It is estimated that this movement will reach a level of 2.5 billion tonne km (btkm) by the end of 11^th plan (2011-12) and further to a level of 8 btkm by 2024-25.

4.6.4.9 This level of IWT movement will need about 250 vessels of 1000 DWT by the end of 11^th plan and 800 vessels by 2024- 25. This clearly indicates that there is going to be huge shortage of IWT vessels to meet the perceived demand.

4.7 Issues related with Protocol

4.7.5.1 The IWT Protocol between India and Bangladesh was supposed to be renewed every two years. However, for the last five years, the Protocol was renewed in piece meal manner. It is evident from details of extensions accorded since 3^rd Oct, 2001.

Extension Renewed Up to

1^st Extension Up to 3^rd Jan 2002

2nd Extension Up to 3^rd May 2002

3rd Extension Up to 3^rd Aug 2002

4th Extension Up to 3^rd Oct. 2002

5th Extension Up to 4^th Nov.2002

6^th Extension Up to 3^rd Feb. 2002

7th Extension Up to 3^rd April 2002

8th Extension Up to 3^rd Aug 2002

9th Extension Up to 3^rd Oct. 2002

10th Extension From 4^th Oct. 03 to 3^rd Nov.2003

11th Extension From 4^th Nov. 03 to 3^rd May2003

12th Extension From 4^th Dec. 03 to 3^rd May2004

13th Extension From 4^th May 04 to 3^rd June.2004

14th Extension From 4^th June 04 to 3^rd Aug 2004

15th Extension From 4^th Aug. 04 to 3^rd Oct 2004

16th Extension From 4^th Oct. 04 to 3^rd Nov.2004

17th Extension From 4^th Nov. 04 to 3^rd Dec.2004

18th Extension From 4^th Dec. 04 to 31st May.2005

19th Extension From 1^st June 05 to 30^th Sept.2005

20th Extension From 1st^h Oct. 05 to 31st Mar.2006

21^st Extension From 1^st April 06 to 30^th Sept. 2006

Piecemeal extensions have dampened the enthusiasm of private sector to invest in IWT field where Protocol is a critical aspect.

4.7.5.2 At present there is huge imbalance in respect of vessels of India and Bangladesh being used for inter country trade. Bangladeshi vessels out number Indian vessels totally. This has resulted into lack of enthusiasm by the Indian IWT operators in creating IWT fleet and operating on the protocol routes. The reasons for the same have already been explained for the report elsewhere. It is necessary to address these issues for overall benefit of IWT movement on these protocol routes.

4.7.5.3 The Indian operators had been complaining that while Bangladesh vessels are allowed by India to load/unload cargo at various jetties around the designated Ports-of-Call but Indian vessels are not allowed to touch any other berthing facilities near the designated Ports in Bangladesh. This also has resulted into discontent among Indian operators.

4.7.5.4 The present Indo- Bangladesh protocol on Inland Water Transit and Trade does not provide for any tourism operation involving passenger traffic. There is a lot of potential for tourism in North Eastern region of India and even there has been proposal that foreign tourist visiting North – East would like to sail through Bangladesh to Kolkata using protocol route. At present there is no mechanism through which this can be made possible.

4.7.5.5 The river notices indicating the depth in the protocol route are not being shared at present by both the countries. The same is required for advance planning of voyage and safe movement of IWT vessels. Hence, this item needs to be taken up with Bangladesh authorities.
4.7.5.6 As per Article 17 of the protocol, vessels carrying transit cargo through one country will not be engaged in the inter country trade and will not take or discharge cargo or passengers in the country through which they are passing. This condition restricts economical operation of IWT services due to non-availability of full load of cargo in return trips.

4.7.5.7 There is no container handling terminal in Bangladesh where Indian vessels can load, unload containers. This is creating limitation for the bigger Indian operators to operate on inter country trade through IWT.

4.8 Programme of Development for better Utilization of Protocol Route

4.8.1 Provision of infrastructure facilities

4.8.1.1 Fairway

(i) Assured fairway of 2 m depth and 45 m width should be provided by India/Bangladesh on all the protocol routes for at least 330 days operation in a year. In addition, fairway of 45 m width and 2 m depth be provided in NW-2 up to Dibrugarh and that of 1.5 m depth between Dibrugarh and Sadiya. Efforts should also be made to provide fairway of 3 m depth between Haldia and Farakka. [ Estimated financial implication during 11^th plan – Rs.50 cr. ]

(ii) Formation of shoals can be prevented only by undertaking large scale river training works which are capital intensive, long term projects involving multiple issues and agencies. However, though desirable, it is difficult to plan and execute large scale river training works with sole aim of navigation. Nevertheless, keeping in view the long term perspective it is necessary that long term plan for training the rivers (Brahmaputra and Barak) is prepared got approved and initiated in 11^th Plan. [ Estimated financial implication during 11^th plan – Rs.20 cr. ]

4. 
   The short term and more practical method for maintaining fairway, at least for next decade or so is to undertake open river navigation techniques namely bandalling and dredging. In ports and also in canals, once the dredging is undertaken as capital dredging, the depth so increased can be maintained for a number of years by undertaking nominal maintenance dredging on year to year basis. However, so far as rivers Brahmaputra and Barak are concerned, the concepts of capital and maintenance dredging do not hold good due to morphological features of these rivers with huge movement of sediment load. Due to siltation during the post flood periods, whatever is dredged during the lean season gets totally filled up after the flood and conservancy activities have to start afresh. Practically there is no residual effect of dredging carried out previous year, during the next incoming lean season. Therefore, the entire dredging operation undertaken during each lean season has to be repeated every year for maintaining navigable channel. To provide fairway of 45 meter width and considering 1 meter average depth of cut between Dhubri and Sadiya, about 7.25 lakh cum quantity of dredging is required in NW-2 to be carried out every year. [ Financial implication included in (i) above]
   

(iv) For annual dredging of shoals on NW-2, it is therefore necessary that IWAI possess necessary number of dredgers which are kept at desired locations to tackle shoals during the lean season. With this view IWAI has planned to have 5 CSD and 2 HSDs on NW-2. Out of these, 1 CSD and 1 HSD are already available while 1 HSD is under construction and IWAI is in the process of finalizing tenders for 4 more CSDs for NW-2. With these dredgers, coupled with bandalling to be taken up annually, assured fairway of 2 m depth between Dhubri and Dibrugarh and 1.5 m depth between Dibrugarh and Sadiya can be provided by IWAI. [ Estimated financial implication during 11^th plan – Rs.70 cr. ]

(v) Navigational lock at Jangipur

For operationlising Farakka- Padma route the protocol route ‘Rajshahi- Godagari- Dhulian must be extended upto Aricha. It is also necessary that construction of navigational lock at Jangipur is taken up along with excavation/ desiltation of channel between Jangipur lock and Padma river as well as between Jangipur lock and Bhagirathi river for round the year operation. Dredging should also be done in Dhulian – Rajshahi – Aricha route to provide 2m LAD. [ Estimated financial implication during 11^th plan – Rs.190 cr.( Lock- Rs100 cr + Dredging- Rs.40 cr + Dredging in Dhulian – Aricha – Rs.50 cr) ]

(vi) Sunderbans Waterways

On the Indian side, the inland waterways of Sunderbans which are used for inter country and transit trade, are yet to be declared as National Waterway. These must be declared as National Waterway without further delay. Till declaration of Sunderbans as National Waterway, IWAI is taking up minimum development in its capacity of ‘Competent authority’ under the Protocol and the same should continue.

[ Estimated financial implication during 11^th plan – Rs. 25 cr. ]

4.8.1.2 Navigational Aids:

(i) Navigational aids for 24 hrs navigation may be provided in entire NW-2 and Sunderbans waterways by the Indian authorities. [ Estimated financial implication during 11^th plan – Rs.60 cr. ]

(ii) Night navigation facility must also be provided in Bangladesh portions of all the protocol routes by the authorities of Bangladesh [Estimated financial implication during 11^th plan – Rs.10 cr. ]

( iii ) In addition, effective steps must be taken so that night navigation facility provided in Bangladesh is actually used by the Indian vessels.
4.8.1.3 Terminals:

As explained earlier, terminals with mechanical handling facilities, efficient access and egress through rail/road, storage, bunkering and other allied facilities are critical for development of IWT mode and its utilization for transportation of cargo. Taking into account potential of cargo transportation, strategic/locational importance, following terminals are proposed to be developed during the 11^th Plan for enhanced utilization of IWT mode:

A. On National waterway -2

a) Fixed terminals:

Fixed terminals are proposed at following locations:

(i) Dhubri: It is a traditional IWT terminal with potential of huge transportation to Bangladesh and Kolkata. Dhubri also has many industries and jute godowns. The local people’s representatives have requested for a fixed terminal at this location. [Estimated financial implication during 11^th plan – Rs.25 cr. ]

(ii) Jogighopa: Fixed terminal is proposed at this location because of its potential for transportation of huge quantity of Meghalaya coal. [Estimated financial implication during 11^th plan – Rs.25 cr. ]

(iii) Pandu (Guwahati): It is by far the most important location of the entire North East. A fixed terminal is already coming up at this location along with container handling facilities and rail connectivity. B.K. group of industries have also shown keen interest to use a part of this terminal for transportation of about 1-2 m.t.p.a of fly ash/clinker/cement. [Estimated financial implication during 11^th plan – Rs.20 cr. ]

b) Floating terminals:

Floating terminals with limited mechanical handling facilities by way of floating cranes are proposed at following locations:

(i) Tejpur: It is an important location of north Assam. It also was an important traditional terminal of CIWTC. It is proposed to develop a floating terminal at this location which may be up graded to fixed one when cargo through-put crosses about 20,000 tonne per year or so. [Estimated financial implication during 11^th plan – Rs.3 cr. ]

(ii) Silghat: This location is a good location for handling cargo of Numaligarh Refinery Ltd (NRL). One floating terminal has already been developed by IWAI at this location along with NRL. It is proposed to upgrade/ develop this terminal and make it a proper POL terminal. [Estimated financial implication during 11^th plan – Rs.3 cr. ]

(iii) Jamguri: At this location, Subansiri river meets Brahmaputra from the north side. Considering ongoing construction of a big hydro- power dam on river Subansiri, and distinct possibility of transportation of huge quantity of construction material as well as project material to the dam site by IWT mode, development of an IWT terminal at Jamguri is a necessity. We may however start with a floating terminal and up grade it to a fixed one depending upon the requirement. [Estimated financial implication during 11^th plan – Rs.3 cr. ]

(iv) Bogibil: This is another important location on Brahmaputra. Bogibil is very near to Dibrugarh and an important road bridge is under construction at this place. Many tea gardens are near to this place which also was a traditional IWT terminal of CIWTC. Therefore it is felt that an IWT terminal at this location will be important.[Estimated financial implication during 11^th plan – Rs.3 cr. ]

(v) Saikhowa: This also was a traditional IWT terminal of CIWTC. In this area roads are not adequately developed and most of the population depends on inland waterways even now. Thus it is necessary to develop a proper floating terminal at this location.[Estimated financial implication during 11^th plan – Rs.3 cr. ]

(vi) Sadiya: This also was a traditional IWT terminal of CIWTC. In this area roads are not adequately developed and most of the population depends on inland waterways even now. Moreover, it is one end of National waterway -2. Thus it is necessary to develop a proper floating terminal at this location. [Estimated financial implication during 11^th plan – Rs. 3 cr. ]

B. On National waterway -1

Since connectivity of North- East waterways with Kolkata and Haldia ports is critical for increased utilization of waterways, it is proposed that fixed terminals be developed at following places on NW-1 also :-

(i) Haldia [ Estimated financial implication during 11^th plan – Rs.30 cr. ]

(ii) BISN, Kolkata [ Estimated financial implication during 11^th plan – Rs.30 cr. ]

(iii) GR Jetty, Kolkata [ Estimated financial implication during 11^th plan – Rs.30 cr. ]

(iv) Farakka [Estimated financial implication during 11^th plan – Rs.5 cr. ]

C. On Barak river (proposed NW-6)

After declaration four terminals are proposed to be constructed in river Barak during 11^th Plan period.

(i) Karimganj [Estimated financial implication is Rs 3.2 Cr)]

(ii) Badarpur [Estimated financial implication is Rs 8.1 Cr]

(iii) Silchar [Estimated financial implication is Rs 4.7 Cr]

(iv) Lakhipur [Estimated financial implication is Rs 6.3 Cr]

4.8.2 IWT Vessels

As mentioned earlier there is gross mis-match of IWT fleet belonging to Indian operators and Bangladeshi operators for transportation of inter country cargo between Kolkata/Haldia and Bangladesh. Most of the vessels operating on this route are of Bangladesh. The reasons for this mis-match is also brought out earlier. It is proposed that following policy measures/ incentives may be operationalised in order to encourage Indian operators to the Indian operators:-

(i) Inland Vessel Building Subsidy[ Estimated financial implication during 11^th plan – Rs.300 cr. ]

(ii) freight subsidy for transportation of cargo, [ Estimated financial implication during 11^th plan – Rs.50 cr. ]

(iii) duty free diesel/ bunkering for Indian vessels[ Estimated financial implication during 11^th plan – Rs.10 cr. ]

(iv) joint ventures for ownership and operation of vessels with equity by IWAI[ Estimated financial implication during 11^th plan – Rs.50 cr. ]

(v) vessel leasing company for making available inland vessels on lease[ Estimated financial implication during 11^th plan – Rs.50 cr. ]
4.8.3 Development of Barak River (proposed NW-6)

A proposal for declaring river Barak from Lakhipur-Karimganj (152 KM) as a National Waterway has been prepared and is under consideration of the Govt. The cost of development for this waterway has been estimated as Rs. 46 Cr. which includes Rs. 23 Cr. for fairway development and setting up of offices and Rs. 23 Cr. for terminals. Barak river which connects Haldia and Kolkata Ports with Cachar valley of Assam, through Kolkata–Karimganj protocol route should be declared as national waterway and developed by Central Govt. through IWAI. [ Estimated financial implication during 11^th plan – Rs.46 cr. ]