India introduced regulations to enhance infrastructure development on its national waterways. The National Waterways (Construction of Jetties/Terminals) Regulations aim to attract private investment and streamline processes for terminal operations. This initiative is expected to improve logistical efficiency and reduce transportation costs, ultimately contributing to economic growth.
About the Regulations
The regulations allow various entities, including private companies and joint ventures, to establish and operate jetties and terminals on national waterways. A ‘No Objection Certificate’ (NoC) from the Inland Waterways Authority of India (IWAI) is required for all developers. Both new and existing terminals are included, with permanent terminals having indefinite operational periods and temporary terminals allowed for five years, extendable upon review.
Digital Application Portal
IWAI is developing an online portal to facilitate the terminal application process. This digital platform aims to enhance efficiency, transparency, and accessibility, aligning with the government’s Ease of Doing Business (EODB) initiative. The portal will allow applicants to submit requests and monitor their application status in real-time.
Promoting Private Sector Participation
Under the leadership of Prime Minister Narendra Modi and Union Minister Sarbananda Sonowal, IWAI has made progress in utilising waterways for economic growth. Cargo movement on national waterways increased from 18 million tonnes to 133 million tonnes in FY 2023-24. This growth is part of a larger vision to encourage sustainable development and leverage digitalisation for improved business practices.
Incentives for Cargo Transport Shift
The Jalvahak scheme has been launched to encourage a shift in cargo transport, aiming for a 17% increase in usage of national waterways. This initiative is expected to further stimulate private sector involvement in the development of inland waterways, enhancing the overall efficiency of cargo transport in the country.
Impact on Economic Growth
The introduction of these regulations is anticipated to position inland waterways as a key driver of India’s economy. By improving logistical frameworks and reducing costs, the initiative supports the broader economic objectives of trade expansion and infrastructure development.
Future Prospects
As private entities increasingly engage in the development of terminals, the inland waterways sector is set for expansion. The combination of regulatory support and digital innovation is expected to transform the landscape of cargo transport in India.
Questions for UPSC:
- Examine the impact of digitalisation on the Ease of Doing Business in India.
- Critically discuss the role of private sector participation in infrastructure development in India.
- Point out the significance of inland waterways in reducing transportation costs. How does this contribute to economic growth?
- Analyse the objectives of the Jalvahak scheme in the context of sustainable transport solutions in India.
Answer Hints:
1. Examine the impact of digitalisation on the Ease of Doing Business in India.
- Digitalisation streamlines processes, reducing bureaucratic delays and enhancing efficiency.
- Online portals facilitate real-time tracking of applications, increasing transparency for businesses.
- Digital tools improve access to information and services for entrepreneurs and investors.
- Government initiatives promote a business-friendly environment, boosting investor confidence.
- Overall, digitalisation supports a more competitive and agile business ecosystem in India.
2. Critically discuss the role of private sector participation in infrastructure development in India.
- Private investment brings in capital, expertise, and innovation, accelerating infrastructure projects.
- Public-private partnerships (PPPs) leverage strengths of both sectors for efficient service delivery.
- Private sector involvement can lead to improved quality and maintenance of infrastructure.
- Government regulations, like the National Waterways Regulations, encourage private participation.
- Increased private sector role contributes to job creation and economic growth.
3. Point out the significance of inland waterways in reducing transportation costs. How does this contribute to economic growth?
- Inland waterways offer a cost-effective transport alternative, reducing fuel and operational costs.
- Efficient cargo movement via waterways alleviates congestion on road and rail networks.
- Lower transportation costs enhance trade competitiveness, benefiting exporters and consumers.
- Improved logistics can stimulate regional development and boost local economies.
- Overall, cost-effective transport solutions support broader economic objectives and growth.
4. Analyse the objectives of the Jalvahak scheme in the context of sustainable transport solutions in India.
- The Jalvahak scheme aims to incentivize a shift to waterways, promoting eco-friendly transport.
- It seeks to reduce carbon emissions associated with traditional road transport methods.
- Encouraging waterway use can alleviate traffic congestion and enhance urban mobility.
- The scheme targets a 17% increase in cargo transport on waterways, boosting efficiency.
- Overall, it aligns with India’s sustainable development goals and promotes long-term environmental benefits.
