India waives waterways usage charges to attract cargo into Inland waterways

July 25, 2020: Ministry of Shipping on Friday has waived the waterway usage charges, initially for three years, with immediate effect to promote inland waterways as a supplementary, eco-friendly and cheaper mode of cargo transport.

The decision is estimated to increase the inland waterway traffic movement to 110 million metric tonnes (MMT) in 2022-23 from 72MMT in 2019-20.

Union minister of state for shipping Mansukh Mandaviya said “Currently only 2 percent of total cargo traffic moves through waterways. The decision of waiving waterway charges will attract the industries to use the national waterways for their logistical needs. As the mode of transport is eco-friendly and cheaper, it will not only reduce the burden on other transport modes but also promote the ease of doing business."

Water usage charge was applicable on the use of all the national waterways by vessels. It was a hindrance in the administration of traffic movement and collection of traffic data. Presently, Inland Waterways Authority of India (IWAI) levies the waterway usage charges at a rate of Rs 0.02 per gross registered tonnage (GRT) per kilometre for plying of Inland cargo vessels and Rs. 0.05 per gross registered tonnage (GRT) per kilometre for plying of cruise vessels on national waterways.

Cheaper and eco-friendly transport is now a reality!

Ministry of Shipping waives water usage charges on vessels, for plying on National Waterways.

it will boost the traffic movement on waterways from current 72 MMT to 110 MMT in 2022-23

Promoting EoDB through waterways! pic.twitter.com/3V2uGT1Yvl

— Mansukh Mandaviya (@mansukhmandviya) July 24, 2020