January 30, 2002

'25'

INLAND VESSEL BUILDING SUBSIDY SCHEME

    Government has introduced a new Inland Vessel Building Subsidy Scheme (IVBSS) for encouraging better cargo and passenger movement in national waterways in the country. The scheme will come into effect from April 1 this year and would remain in force for a period of 5 years.

    The scheme is applicable to both cargo and passenger inland vessels meant for operation in National Waterways and subsidy would be paid to the prospective ship owner, individual or a company. The subsidy payable under the scheme would be 30 per cent of the ex-factory price of the inland vessel which will be available only for vessels acquired by an Indian inland water transport entrepreneur from a shipyard in India. The scheme would be operated as a credit linked subsidy scheme under which a part of cost of construction would be met by financial institution/banks. Chairman, Inland Waterways Authority of India will be the competent authority for sanctioning and releasing the subsidy.

    The Inland National Waterways comprise the Ganga from Haldia to Allahabad (1620 Km), the Brahmaputra from Dhubri to Sadiya (891 Km) and the West Coast Canal from Kottapuram to Kollam along with Champakara and Udyogmandal canals (205 Km). Infrastructural facilities such as fairway, terminals and navigational aids are being provided in the 3 national waterways to facilitate efficient shipping and navigation. With these facilities coupled with the advantage of fuel efficiency, this mode of transport would provide an efficient and economic transportation facility, which in turn is expected to facilitate substantial shift of cargo to inland waterways. The scheme is also aimed at reducing the burden on private carriers and to enhance their profitability by utilizing maximum fairway capacity in the national waterways.