The Ministry of Shipping on July 24 has announced to waive waterway usage charges. The move the government aims at promoting inland water support and increasing the inland waterway traffic to 110 million tonnes in 2022-23.
As per the statement, the Shipping Ministry has decided to waive waterway usage charges considering the Indian government’s vision to promote inland waterways as an eco-friendly, supplementary, and cheaper mode of transport.
The charges on waterway usage have been waived initially for three years. The decision will help in increasing the inland waterway traffic movement which will help in the development in the region.
Significance of waiving waterway usage charges:
As per the Shipping Minister, Mansukh Mandaviya, the decision of the government to waive waterway charges will help in attracting the industries to use National waterways for their logistical needs. Also, as the waterway transport is cheap, it will not only reduce the burden on the other transport modes but will also promote the ease of doing business.
The step by the ministry is estimated to increase the inland waterway traffic movement to 110 million metric tonnes in 2022-2023 which was 73 MMT in 2019-20. It will help the country in economic activities and will bring development in various regions.
Background:
Earlier, waterway usage charges were applicable to all the national waterways by vessels. It was a hindrance to the collection of traffic data and the administration of traffic movement.
Currently, Inland Waterways Authority of India imposes the waterway usage charges at a rate of 2 paise per gross registered tonnage per km for the plying of Inland Cargo vessels.
While there is 5 paise per gross registered tonnage per km for the plying of Cruise Vessels on the National waterways.
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