Waterways Usage Charges Waived by Govt.

Published: July 24, 2020

In order to promote the vision of the government to promote the usage of inland waterways as a supplementary, eco-friendly and cheaper mode of transport in India, the Ministry of Shipping has announced that the waterways usage charges will be waived for an initial period of three months to promote this.

At present, only 2% of the total cargo traffic moves through the waterways in India and this decision of doing away with the waterway charges are going to attract the industries to use the national waterways for their logistical needs. The mode is also eco-friendly to be used and cheaper. The national waterways mode of transport modules will not only burden the other modes of transport but also promote the ease of doing business in the country.

Background

As of now, the water usage charges are applicable on use of all the national waterways by vessels; it was a hindrance in the administration of traffic movement and collection of traffic data. The Inland Waterways Authority of India levies the waterway usage charges at a rate of Rs 0.02 per gross registered tonnage per kilometre for plying of inland cargo vessels and Rs 0.05 per gross registered tonnage per kilometre for plying of cruise vessels on national waterways.

Now all these charges have been done away with and it is expected to increase the inland waterway traffic movement to 110 MMT in 2022-2023 from the present level of 72 MMT for this year.

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