Inland Waterways Private Participation Financing Models Being Worked Upon
New Delhi – The Inland Waterways Authority of India (IWAI) will involve banks for ensuring
availability of financing options for the private players engaged in Inland Water
Transport (IWT) sector.
Financing and funding for Operation and Maintenance of IWT assets is a challenge
for shippers, vessel operators and asset management firms as the banking sector
is not yet ready with any customized financing option for the sector.
Addressing the day-long Stakeholders Conference on Emerging Business
opportunities in Inland Water Transport Sectorwas organized by IWAI at
New Delhi,the IWAI chairperson Smt. NutanGuha Biswas said that the banking
finance is needed for the emerging business opportunities that private players
are inclined to be involved with.
Smt. Biswas said that lots of investment are being done to develop the waterway
sector which is going to complement railways and roadways and we have started
working on eight new National Waterways, in addition to five others on which
work had been on in full swing.
Shri Rajat Sachar, Advisor in the Ministry of Shipping, sought recommendations
from private players for policy changes to make Inland water transport a vibrant sector.
Govt will invest 5369 crore in national waterways
Referring to the Jal Marg Vikas Project being implemented between Varanasi
and Haldia on river Ganga, he said, the government has decided to invest
Rs 5369 crore on one National Waterway.
He also appealed to the financial institutions to offer products for private sector
investment in IWT sector where annual government funding has increased
by 12 times in the last 4 years.
The MD&CEO of theBank of Baroda Shri PS Jayakumar said that banks can
provide flexible scheme for financing, like providing the moratorium period
loans on existing as well as the new projects.
He added that issue of bonds can be the alternative source for long-term loan
capital financing ship-owners.
The Government is developing National Waterways as a key transport
intervention, as part of an integrated transport network strategy, which will
help correct the transport modal mix that imposes huge logistics costs on the Indian economy.
At present the cost of logistics in India, at 15 per cent of GDP, are about twice those in the United States.