The working group report

(b)	Radio Aids
18	Establishment of National AIS Network	5000.00	500.00	3000.00	1500.00	-	-
19	Procurement of Racon	500.00	100.00	100.00	100.00	100.00	100.00
20	Automation of Lighthouses: a) Kochi Lighthouse District (Rs.700 lakh) b) Chennai Lighthouse District (Rs.500 lakh) c) Kakinada Lighthouse District (Rs.600 lakh) d) Kolkata Lighthouse District (Rs.300 lakh)	2100.00	-	200.00	800.00	700.00	400.00
21	Establishment of DGPS at Rameshwaram LH	200.00	50.00	150.00	-	-	-
	Sub Total (b)	7800.00	650.00	3450.00	2400.00	800.00	500.00
(c)	Development of Information Technology	1000.00	100.00	200.00	400.00	200.00	100.00
	Sub Total (c)	1000.00	100.00	200.00	400.00	200.00	100.00
(d)	Replacement of Assets
22	Replacement of Assets	500.00	50.00	50.00	50.00	150.00	200.00
	Sub Total (d)	500.00	50.00	50.00	50.00	150.00	200.00
	Total (A) = Sub Total (a) +(b)+(c)+ (d)	12760.00	1050.00	4260.00	3865.00	2070.00	1515.00
(B)	Scheme 5051-Capital Outlay on Ports & Lighthouses 03-Lighthouses & Lightships 03.103 – C&D of other Navigational Aids
23	Replacement of MV Pradeep	5000.00	-	500.00	1000.00	1500.00	2000.00
24	Acquisition of new LH Tender Vessel	5000.00	-	500.00	1000.00	1500.00	2000.00
	Total (B)	10000.00		1000.00	2000.00	3000.00	4000.00
	Grand Total = Total (A) + (B)	22760.00	1050.00	5260.00	5865.00	5070.00	5515.00

REPORT
OF SUB GROUPS I & II

(INLAND WATER TRANSPORT)
set up by

the Working Group on Shipping

&

Inland Water Transport

for

the Eleventh Five Year Plan

(2007-2012)

Inland Waterways Authority of India

(Ministry of Shipping, Road Transport & Highways,

Govt of India)

A-13, Sector-1, Noida, U.P-201 301

December 2006

INDEX

Chapter #	Contents	Page #
	Abbreviations	(i)
	Introduction	(iv)
	Executive Summary	(viii)
1	Review of Financial and Physical Performance of IWT Sector during 10^th Fiver Year Plan	1
2	Review of IWT Policy 2001	19
3	Role of IWT in achieving Optimal Inter-Modal mix	22
4	Utilization of IWT mode for North East and Trade with Bangladesh	33
5	Training facilities in respect of IWT	52
6	Paradigm shift in IWT Development	61
7	Programme for Development and Fund requirement for 11^th Plan	68
	Annexures	83

Abbreviations

ADB - Asian Development Bank

AP - Andhra Pradesh

B’Border - Bangladesh Border

BE - Budget Estimate

BISN - British India Steam Navigation

BIWTA - Bangladesh Inland Water Transport Authority

BOT - Built Operate and Transfer

BRPSE - Board of Reconstruction for Public Sector Enterprises

BS - Budgetary Support

BSF - Border Security Force

BTKM/btkm - Billion ton kilometre

CEC - Central European Countries

CES - Consulting Engineering Services

CII - Confederation of Indian Industries

CIWTC - Central Inland Water Transport Corporation Ltd

CMA - Cement Manufactures Association

CMD - Chairman and Managing Director

COS - Committee of Secretaries

CPWD - Central Public Works Department

Cr or cr - crore

CRPF - Central Reserve Police Force

CSD - Cutter Suction Dredger

CSEZ - Cochin Special Economic Zone

CSS - Centrally Sponsored Scheme

CWC - Central Water Commission

CWPRS - Central Water and Power Research Station

DER - Debt Equity Ratio

DG - Director General

DGLL - Director General of Light house and Light ships

DGPS - Differential Global Positioning System

DPR - Detailed Project Report

d/s - down stream

Dte - Directorate

DVC - Damodar Valley Corporation

DWT - Dead Weight Tonnage

EBR - Extra Budgetary Resources

EC - European Community

ECC - East Coast Canal

EIA - Environmental Impact Assessment

EMP - Environment Management Plan

ESCAP - Economic and Social Commission for Asia and Pacific

EU - European Union

FBP - Farakka Barrage Project

FCI - Food Corporation of India Ltd

FICCI - Federation of Indian Chamber of Commerce and Industry

GPS - Global Positioning System

GRSE - Garden Reach Shipbuilders and Engineers

HDC - Haldia Dock Complex

HP - Horse power

HSD - Hydraulic Surface Dredger

HSD - High Speed Diesel

IIPM - Indian Institute of Port Management

IIT - Indian Institute of Technology

IMPV - Inland Mechanically Propelled Vessel

IMO - International Maritime Organization

I.V. - Inland Vessel

IVBSS - Inland Vessel Building Subsidy Scheme

IWAI - Inland Waterways Authority of India

IWT - Inland Water Transport

IWTD - Inland Water Transport Directorate

IWTDA - Inland Water Transport Directorate Assam

JCI - Jute Corporation of India Ltd

JV - Joint Venture

KoPT - Kolkata Port Trust

LAD - Least Available Depth

LBSI - Lal Bahadur Shastri Institute

LISS - Loan Interest Scheme Subsidy

MD - Managing Director

MMD - Mercantile Marine Department

M/o - Ministry of

MoU/ MOU - Memorandum of Understanding

MoWR - Ministry of Water Resources

Mt/ MT - metric ton

mtpa - million tonnes per annum

M.V - Marine Vessel

NA - Not Available

NCAER - National Council for Applied Economic Research

NE - North East

NEC - North Eastern Council

NER - North Eastern Region

NH - National Highway

NINI - National Inland Navigation Institute

NMA - National Maritime Academy

NMDP - National Maritime Development Programme

NPC - National Productivity Council

NRL - Numaligarh Refinery Ltd

NTPC - National Thermal Power Corporation Ltd

NW-1 - National Waterway-1

NW-2 - National Waterway-2

NW-3 - National Waterway-3

NW-4 - National Waterway-4

NW-5 - National Waterway-5

NW-6 - National Waterway-6

NWs - National Waterways

O-D - Origin- Destination

ODC - Over dimensional cargo

OM - Office Memorandum

O&M - Operation and Maintenance

PAC - Programme Advisory Committee

PMO - Prime Minister’s Office

POL - Petroleum oil lubricant

POC - Port of call

PPP - Public Private Participation

PPTA - Project Preparing Technical Assistance

PSE - Public Sector Enterprise

PSU - Public Sector Undertaking

Pvt - Private

PWD - Public Works Department

RBD - Rajabagan Dockyard

RCC - Reinforced cement concrete

R&D - Research and Development

Ro-Ro - Roll on Roll off

Rs - Rupees

RT - River Training

SAIL - Steel Authority of India Ltd

SCTC - State Crew Training Centres

SPV - Special Purpose Vehicle

SPV - Self Propelled Vessel

STCW - Standards of Training, Certification and Watch keeping

T or t - ton

TEF - Techno-economic Feasibility

t-km or Tkm - ton kilometre

TT Shed - Tea Transit Shed

TEU - Twenty equivalent units

UP - Uttar Pradesh

u/s - upstream

US/ USA - United States of America

VRS - Voluntary Retirement Scheme

WB - West Bengal

WBSTC - West Bengal Surface Transport Corporation Ltd

WCC - West Coast Canal

INTRODUCTION
In the context of formulation of Eleventh Five Year Plan (2007-2012), the Planning Commission constituted Working Group on Shipping and Inland Water Transport (IWT) vide O.M no. 18/7/2005-Tpt dated 17-4-2006, under the chairmanship of Secretary, Department of Shipping. The terms of reference for this Working Group were also mentioned in the OM. Chairman of the Working Group was also empowered to constitute Sub Groups and co-opt officials or non-officials, if considered necessary.
2. Department of Shipping vide O.M. No SY-11018/3/2006-SC dated 22^nd June, 2006 constituted two Sub Groups of the Working Group on Shipping and IWT for formulation of 11th Five Year Plan for IWT Sector.
3. Sub Group I (Inland Water Transport) was set up under the chairmanship of Chairman, Inland Waterways Authority of India comprising the following members:-

1. 
   Chairman, Inland Waterways Authority of India - Chairman
   
2. 
   Joint Secretary/ DG Tourism, Ministry of Tourism - Member
   
3. 
   Director (Transport), Planning Commission - Member
   
4. 
   Director (IWT&SCI), Dept of Shipping - Member
   
5. 
   Chairman and Managing Director,
   

Dredging Corporation of India - Member

6 Chairman and Managing Director, CIWTC - Member

7 Chief Engineer (Design-NW&S), CWC - Member

8 Secretary (Transport) Govt of Goa - Member

9 Secretary (Transport) Govt of Kerala - Member

10 Secretary (Transport), Govt of Tamil Nadu - Member

11 Representative of Naval Architecture,

IIT Kharagpur - Member

12. 
    Managing Director, West Bengal Surface
    

Transport Corporation, Kolkata - Member

13 Representative of CII - Member

14 Representative of Goa Barge Owners Association - Member

15 Additional Director, CWPRS, Pune - Member

16 Vice Chairman, IWAI - Member-Convenor

3.1 In the OM of Department of Shipping mentioned above, the Chairman of the Sub-Group was also empowered to co-opt officials or non-officials as members for the Sub-Group, if considered necessary. Accordingly, the following members were co-opted:-

1. 
   Secretary concerned with IWT Affairs, Govt of Andhra Pradesh
   
2. 
   Secretary concerned with IWT Affairs, Govt of Assam
   
3. 
   Secretary concerned with IWT Affairs, Govt of Bihar
   
4. 
   Secretary concerned with IWT Affairs , Govt of Pondicherry
   
5. 
   Secretary concerned with IWT Affairs, Govt of Uttar Pradesh
   
6. 
   Secretary concerned with IWT Affairs , Govt of West Bengal
   
7. 
   Additional Chief Secretary, Govt of Assam
   
8. 
   Chairman, Kolkata Port Trust
   
9. 
   Representative of NCAER, New Delhi
   
10. 
    Representative of Ministry of Water Resources, Govt of India
    
11. 
    Representative of Cement Manufactures Association, Noida
    
12. 
    Representative of Indian Coastal Conference, Mumbai
    
13. 
    Representative of Goa Mineral and Ore Exporters Association, Goa
    

3.2 The terms of reference for the Sub Group I were:-

1. 
   To review the physical and financial performance of the Inland Water Transport (IWT) in the Central and State sectors with particular reference to Tenth Five Year Plan targets and draw lessons there from for the Eleventh Plan
   
2. 
   To assess the role of inland water transport in achieving optimal intermodal mix
   
3. 
   To recommend a policy frame work for development of IWT during Eleventh Plan keeping in view the need for relieving pressure on other surface mode of transport. Following aspects may be taken into account (a) economics of the IWT vis-à-vis other modes of transport, (b) need to promote private sector participation, (c) need to improve the productivity of the sector particularly operation, (d) role of IWT in the North-East and (e) feasibility of inter linking of waterways favorably for uninterrupted IWT.
   
4. 
   To formulate programme for development of IWT sector for the Eleventh Plan keeping in view IWT Vision 2020. Activities for each year of the Eleventh Plan indicating physical and financial outlays and targets to be prepared
   
5. 
   To assess the requirement of funds during Eleventh Plan and to identify possible sources of funding
   
6. 
   To identify the constraints in the smooth operation of waterways transport like shallow water, narrow width of channels, siltation etc. and to formulate plans for conservancy works including hydrographic surveys, dredging of waterways and provision of infrastructural facilities like terminals
   
7. 
   To assess the performance of Inland Waterways Authority of India (IWAI) with regard to (a) development, maintenance and management of the national waterways in the country (b) research and development works, technical studies, hydrographic surveys etc and (c) assistance given to States in formulation, implementation of Centrally Sponsored Schemes relating to improvement of waterways in various States.
   
8. 
   To recommend measures for promoting private sector participation in the development of IWT
   
9. 
   To review CSS with particular reference to development of infrastructural facilities for promotion of IWT.
   

4. Sub Group II (IWT) was headed by Vice Chairman, IWAI and comprised the following members:-

i) Vice-Chairman, Inland Waterways Authority of India Chairman ii) Chairman & Managing Director, Central Inland Water Member

Transport Corporation

iii) Adviser, Transport Research, Deptt. of Shipping Member

iv) Joint Secretary, Ministry of Petroleum Member

v) Transport Secretary, State Govt. of Bihar Member

vi) Joint Adviser (Petroleum), Planning Commission Member

vii) Representative, Department of Coal Member

viii) Secretary, North Eastern Council Member

ix) Secretary (Transport), Govt. of Assam Member

x) Representative from Federation of Indian Member

Chambers of Commerce & Industry (FICCI)

xi) Representative of Food Corporation of India (FCI) Member

xii) Representative of Goa Barge Owners Association Member

xiii) Director (IWT), Department of Shipping Member

14. 
    Principal, Lal Bahadur Shastri Institute of Maritime
    

Studies, Mumbai Member

xv) Chairman and Managing Director, Dredging

Corporation of India Member

xvi) Hydrographic Chief, IWAI Member

xvii) Director (IWT), Govt of Assam Member

xviii) Member (Cargo &Finance) ,IWAI Member- Convener

1. 
   The co-opted members of the Sub-Group II (IWT) were the following:-
   

1. 
   Representative of Govt of Orissa
   
2. 
   Representative of Govt of Goa
   
3. 
   Representative of IWT Federation, Kolkata
   
4. 
   Capt. M.M.Saggi, Nautical Advisor to the Govt of India
   
5. 
   Director, Indian Institute of Port Management, Kolkata
   
6. 
   Chairman, Kolkata Port Trust
   

4.2 The terms of reference for the Sub Group II were:

1. 
   To evaluate the utilization of transit and trade between India and Bangladesh and suggest/recommend the measures for maximum utilization of these routes in particular for increase in traffic in North-East.
   
2. 
   To examine the existing training facilities in Inland Water Transport, efforts made during Tenth Plan and recommend measures for increasing the human resource potential in the field of IWT.
   

5. The first meeting of both the Sub-Groups was held on 24^th July, 2006 at 1100 hrs and 1500 hrs respectively at IWAI, H.O, Noida. Minutes of the meeting are enclosed at Annex-I (a) and I (b). Separate draft reports of the two Sub-Groups were prepared and circulated to all the members for discussion and adoption in the second and final meetings held on 17^th October, 2006 at IWAI, Head Office, Noida. Minutes of the second meeting are enclosed at Annex-II (a) and II (b). The draft report was modified in the light of the suggestions/ views expressed by the Members.

A presentation of the Sub Group’s reports was also made before Secretary (Shipping) [the chairman of the Working Group (Shipping & IWT)] on 23^rd October, 2006. As per the decision taken in that meeting, a Combined Report of both the Sub-Groups I & II on IWT sector is submitted herewith.

Noida, (S.B.MATHUR)

Dated: 18^th December, 2006 Chairman, IWAI


CHAPTER – 1

REVIEW OF FINANCIAL AND PHYSICAL PERFORMANCE OF IWT SECTOR DURING 10^TH FIVE YEAR PLAN
I. Review of Performance of Inland Waterways Authority of India
1.1 Introduction
Inland Waterways Authority of India (IWAI) was constituted in October 1986, for the development and regulation of inland waterways for shipping and navigation. The Authority inter-alia undertakes infrastructure development and maintenance works on national waterways. It also carries out techno-economic/ environmental studies on potential waterways, provides subsidy for construction of inland vessels and assists States for development of waterways through Centrally Sponsored Scheme (CSS) for development of Inland Water Transport (IWT).