Water Transport (IWT) is an economic, fuel-efficient and environment friendly
mode of transport. India has an extensive network of rivers, lakes and
canals which, if developed for shipping and navigation, can provide an
efficient network of inland transportation. An optimal mix of road, rail
and inland water transport will provide an efficient transport infrastructure
with mobility, flexibility and cost effectiveness. While the thrust so
far has been in developing road and rail sectors, Government recognizes
the need to actively promote the IWT sector for it to take a reasonable
share in the inter-modal mix of inland transport.
Inland Waterways Authority of India Act, 1985 empowers the Government
to declare waterways with potential for development of shipping and navigation
as National Waterways and develop such waterways for efficient shipping
and navigation. So far, waterways namely, the Ganga, the Brahmaputra and
the West Coast Canal have been declared as National Waterways and are
being developed for shipping and navigation by the Central Government.
revival plan of Inland Water Transport would include increasing the coverage
of National Waterways and provision of necessary infrastructure for shipping
and navigation and in augmenting the IWT fleet. While there would be a
need for budgetary support for the development of the IWT sector, equally
important would be a large-scale private sector participation both for
creation of infrastructure and for fleet operations.
IWT strategy aims at generating a more pro-active role by various agencies
for the development of this sector. It has now been decided to enlarge
the scope of the role of the Government as a provider, facilitator and
regulator and, at the same time, offer various concessions to the private
sector for their effective participation by way of investment for creation
of enhanced IWT infrastructure and fleet operations.
LAW, JUSTICE & COMPANY
AFFAIRS AND SHIPPING
GOVERNMENT OF INDIA
Inland water transport (IWT) is an energy efficient and cheaper mode
of transport for bulk commodities, especially those originating and terminating
on the water fronts. It is environment friendly and has high employment
potential. However, at present it forms a very small part of the total
transport network. In terms of tonne kilometres of total inland cargo,
its share is less than 1 per cent. Cargo transportation in an organised
manner takes place now mostly on the three National Waterways(NW) and
in the States of Assam, Goa, Kerala and West Bengal. The annual cargo
moved by IWT is about 16 to 18 million tonnes corresponding to about 1.5
billion tonne kms. of the total inland cargo of about 900 to 1000 billion
tonne kms, the balance being served by road and rail.
India has navigable waterways aggregating to about 14,500 kms. of which
about 5,200 kms. of major rivers and 485 kms. of canals are suitable for
operation of mechanized crafts. Most of the waterways suffer from navigational
hazards like shallow waters and narrow width of the channel during dry
weather, siltation, bank erosion, absence of infrastructure facilities
like terminals and inadequacy of navigational aids. The existing availability
of vessels for IWT in the public and private sectors put together is less
than 400 vessels including tankers, bulk carriers, dumb barges and other
vessels of average capacity of 600 tonnes.
The thrust of efforts by the government is to develop waterways for
navigation with the necessary infrastructure such as fairway, terminals,
navigational aids and fleet so that the IWT mode becomes competitive and
can attract cargo dictated by market forces.
Plan Thrust Areas and Strategy
The Ninth Five Year Plan document states as follows:-
The potential of cargo movement by the declared National Waterways and
other waterways is estimated to be 50 billion tonne kms., compared to
the current level of less than one billion tonne kms. Considering the
potential role and significance of IWT, it was recognised that a substantial
step-up in the traffic is necessary in the Ninth Plan, so that the IWT
sector will be able to launch itself as a future alternative mode of
environment-friendly transport system in the sectors identified for
its growth. It is estimated that a shift of one billion tonne kms to
IWT will reduce the fuel cost by about Rs. 25 crore and the cost of
transportation by about Rs. 45 crore.
Keeping in view the constraints facing IWT and recognising its potential
for growth, the thrust will be to make IWT as an acceptable mode of
transportation. The basic requirements identified are: reduction in
cost and time of transportation and enhancement of safety and reliability
of the cargo. To achieve this, fairway, fleet, terminals and navigational
aids are pre-requisites and unless these facilities are provided, IWT
will not be able to offer its inherent advantages in terms of cost of
transportation and fuel saving.
To achieve a substantial step-up in traffic in the Ninth Plan the thrust
should be on the creation of infrastructure in the form of fairways
with adequate depth and width besides the setting up of terminals and
navigational aids. At the same time, there is a need to augment the
IWT fleet by suitable type of vessels and ensure adequate cargo support.
The objective of developing IWT as an important mode of transport cannot
be achieved only through the provision of budgetary support to the State
enterprises. The private sector has to play a crucial role in the development
of the sector. The private sector may be involved not only with ownership
and operation of vessels for cargo and passengers but also with the
construction and operation of terminals and river ports, the provision
and operation of mechanized cargo handling system, fairway development
including dredging, provision and maintenance of navigational facilities
and provision of pilotage services. In order to attract the private
sector for development of this mode, suitable fiscal incentives as well
as measures aimed at providing cargo support need to be considered.
The Inland Waterways Authority of India (IWAI) is the nodal agency for
the development of the navigational infrastructure in the National Waterways.
Considering the huge requirements of investible funds, there is also
a need for taking suitable policy initiatives to channelise the funds
for identified user agencies. It was accepted in the Ninth Plan that
efforts will be made for pooling the resources through captive users
such as public sector undertakings dealing with oil, coal, fertilisers
and cement. These agencies will be encouraged to make liberal investment
in IWT sector either as soft loan or as capital investment which would
be recoverable either directly or indirectly over a period of time.
Another important avenue to be explored as a source of funding for the
IWT projects would be the external resources. Investment in potential
waterways as turn-key package with external assistance may be explored
as part of privatisation.
Efforts will be made to strengthen the activities of Central Inland
Water Transport Corporation Ltd (CIWTC) through its fleet acquisition
programme to facilitate movement of cargo through mechanised cargo-vessels.
Its performance specially in terms of fleet capacity utilisation needs
Modernisation of waterways needs to be planned to facilitate 24-hour
navigation in the inland waterways. To meet this goal, a number of lighted
buoys are to be provided along the entire water route. Possibilities
will be explored for private participation in the provision of turn
key project for the supply, installation and maintenance of lighted
Special emphasis would be laid on the development of inland water transport
facilities in the North-Eastern region. The main bulk commodities, which
can be considered suitable for inland water transport movement are coal,
POL, foodgrains, limestone and dolomite, etc. The development of inland
water transport facilities in the North-Eastern region would ensure
cost effective transportation of the above mentioned commodities.
In the past, there have been delays in the formulation and execution
of the schemes/projects on account of organizational constraints. Accordingly,
human resource development is also essential if the Plan objectives
are to be achieved. With the objective of making IWT economically viable
and self-sustaining, a massive increase in its outlay has been suggested.
Interlinking waterways and ports with coastal shipping holds good prospects
in respect of several river systems in India. For instance, Ganga-Brahmaputra-Sunderbans
river system has the potential to be integrated with Haldia-Kolkata
ports, the Brahmani-Mahanadi river system with Paradip port, Krishna-Godavari-Buckingham
Canal with Chennai Port, West Coast Canal with Cochin Port and the Mandovi-Zuari-Cumberjua
Waterways with Mormugao Port. The development and connectivity of these
waterways with the ports will not only ensure development of the entire
hinterland but will also help in relieving the pressure on the other
already congested modes of transportation.
Due to the nascent stage of development of the IWT sector, Research
&Development has to play a crucial role in the development on this
sector. Design of low-cost and shallow-draft vessel and introduction
of navigational aids are important factors for improving the economics
of IWT. In view of this, during the Ninth Plan, an R&D Cell will
be set up in IWAI to act as a nodal agency to coordinate the R&D
activities required to be carried out in this sector.
Being labour-intensive in nature, the IWT sector has the potential for
creating employment generation to many categories of personnel for river
conservancy and river-development activities, operation and maintenance
of terminals and in particular, for manning the inland vessels.
The requirement of trained manpower in the IWT sector can be classified
into two groups. The first category would consist of professionals in
various fields, like hydrography, navigation, civil engineering, mechanical
engineering, naval architecture and transport economics for the development
and management of the waterways and operation of various supporting
infrastructural facilities. The second category of personnel would be
required for operational purposes to man the inland vessels.
For building up trained and skilled manpower for IWT operations, the
augmentation of Human development programme will be accorded priority
and the setting up of a National Inland Navigation Institute, Regional
Navigational Institutes and Regional Crew Training Centres will be considered
during the Ninth Plan.
The safety record of inland water transport is not very encouraging.
The various factors such as navigation aids, etc. suggested earlier
for the development of inland water transport would help in improving
the safety of inland water transport operations.
Measures taken so
far to develop IWT.
5. The problems of Inalnd Water Transport were studied in the past by
several Committees. These Committees considered the difficulties and problems
of river transport and made various suggestions and recommendations for
improvement of the declining IWT system. As a follow-up action, Inland
Waterways Authority of India (IWAI) was set up in 1986 under the IWAI
Act, 1985 for the regulation and development of Inland Waterways in the
country. The Authority has been given financial powers to sanction schemes
involving capital expenditure up to Rs.15 crores.
Three important Waterways have been declared as National Waterways,
viz, Ganga-Bhagirathi-Hooghly River System from Allahabad to Haldia (1620
kms. - in UP, Bihar, Jharkhand and West Bengal) as National Waterway No.1;
River Brahmaputra from Dhubri to Sadiya (891 kms. in Assam) as
National Waterway No.2 and the West Coast Canal from Kottapuram to Kollam
along with Champakara and Udyogmandal Canals (205 kms - in Kerala) as
National Waterway No.3.
Various developmental activities as a part of continuing efforts to improve
inland water transport system are being carried out on these National
National Waterway No.1, navigable depth of 2 metres is maintained
throughout the year on the stretch from Haldia to Farakka ( 560
kms.) and from Farakka to Patna (460 kms) for about 330 days in
Permanent terminal facilities exist at Kolkata, Pakur and Farakka.
Floating terminal facilities are available at Haldia, Kolkata, Karagola,Bhagalpur,
Munger, Patna, Ballia and Allahabad.
Night navigation facilities being provided in the Kolkata- Farakka stretch
National Waterway No.2, depth of 2 metres is maintained between
Dhubri and Pandu (260 kms.) for about 330 days a year.
The Waterway route from Calcutta to Guwahati (Pandu) covering about
1500 kms. is navigable round the year with 1.8 metre draft vessels.
Provision of night navigational facilities between Dhubri and Guwahati
is under implementation.
Floating terminal facilities have been provided at Dhubri, Jogighopa,
Pandu, Tezpur and Neamati.
Warehousing facility is available at Pandu Terminal.
National Waterway No.3, capital dredging is in progress after completion
of which depth can be maintained by nominal maintenance dredging
Terminals exist at Kochi, Edapallikotta, Ambalamugal and Udyogamandal
which are owned and operated by bulk cargo owners.
11 terminals at various locations are to be constructed by IWAI through
Water Transport has been accorded the status of infrastructure under
Section 80 IA of Income Tax Act so as to enable it to avail itself
of concessions applicable to other infrastructure sector.
ensuring planned development of IWT sector, an outlay of Rs.408
crores has been provided for the 9th Plan Period.
Central Inland Water Transport Corporation, Kolkata, a public sector
undertaking set up in 1967 is the principal inland water operator,
undertaking the following activities:
Transportation by inland waterways from Kolkata to Bangladesh and to
Assam and lighterage operations in the river Hooghly.
Transportation from Calcutta to Allahabad.
Construction and repair of small and medium sized vessels.
Repairs of ocean-going vessels.
Loan Interest Subsidy Scheme for acquisition of new inland vessels
at a subsidized interest rate of 5.5% from commercial banks and
financial institutions was in operation from 1983 till the beginning
the role of state governments in developing waterways to meet requirements
of transportation, various projects are assisted on a 50:50 basis
under a Centrally Sponsored Scheme.
Indo-Bangladesh Protocol on IWT renewed for the period up to 3rd
October 2001 provides for inter country and intra country cargo
movement along the transit route. The transit routes under the Protocol
are Kolkata - Pandu - Kolkata, Kolkata - Karimganj - Calcutta, Karimganj
- Pandu - Karimganj and Rajshahi - Dhulian - Rajshahi. The four
ports of call in each country for inter country trade are; Kolkata,
Haldia, Karimganj and Pandu in India and Narayanganj, Khulna, Mongla
and Sirajganj in Bangladesh.
on setting up a National Inland Water Institute in Patna for training
manpower is in progress.
of other waterways under consideration to be developed as national
The Sunderbans (West Bengal) - 191 kms.
The Kakinada - Mercauram canals system integrated with Godavari &
Krishna rivers - 1121 kms.
East Coast Canal system integrated with Brahmani river system - 623
DVC Canal - 136 kms
Barak river - 140 kms
Extension of National Waterway No.3 - 459 kms
urveys and techno economic feasibility studies for establishing the potential
and viability of these Waterways have been carried out.
Policy support for accelerated IWT growth
IWAI to raise bonds
Waterways Authority of India (IWAI) is being authorized to raise bonds
to enable IWAI to borrow from the market and mobilize funds, as provided
for in other infrastructure sectors. The exact nature of the bonds
is to be decided in consultation with the concerned Ministries on
Joint Venture by IWAI
been decided to enlarge the role of IWAI to enter into commercial/joint
ventures to encourage investment in this sector, subject to financial
exposure of the Government being limited to equity participation.
Additional concessions in the form of grants, subsidies and other
expenditure for development of infrastructure will not be within the
scope of the joint venture projects.
Equity participation by Govt. in BOT Projects
approval has been given to the policy guidelines for private sector
participation subject to the equity participation of Government/IWAI
Limited to ceiling of 40% for BOT project being worked out on case-to-case
basis, subject to details of plan scheme for the purpose being finalized
in consultation with Planning Commission. Such participation will
be for areas like fairway development and maintenance, construction
and operation of terminals, provision and operation of mechanized
cargo handling systems, storage facilities, provision of navigational
aids, pilotage projects and setting up and running of IWT training
institutions. Guidelines for private investment in IWT Sector are
given at Annexure-I.
Tax exemption similar to National Highways
of 100% tax exemption to investors in this sector for five years and
further 30% tax exemption permissible under the Income Tax Act to
be availed of in the next five years within a period of 15 years as
in the case of National Highways so as to enable this sector to develop.
Enhancement in depreciation rate for inland vessels
rate of depreciation for all vessels ordinarily operating on Inland
Waterways will be fixed on a par with the rate of depreciation applicable
to ocean going vessels, from time to time.
Vessel Building Subsidy of 30%
a view to encouraging IWT fleet expansion, a scheme will be operationalised
providing for vessel building subsidy of 30% for ship owners for inland
vessels built in Indian shipyards. For the purpose of vessel building
subsidy scheme, inland vessel means, a vessel registered
under Inland Vessels Act, 1917. The present Loan Interest Subsidy
Scheme has been discontinued with effect from 9th January 2001. Ministry
of Shipping will formulate a comprehensive vessel building subsidy
scheme in consultation with the Ministry of Finance.
Customs Duty concessions.
approval has been given for levying minimum customs duty on imported
equipment and machinery for the development of inland waterways to
be identified by IWAI. A list of such equipment/machinery items will
be submitted by the Ministry of Shipping to the Ministry of Finance
in advance so as to facilitate levying of minimum custom duty.
GUIDELINES FOR PRIVATE
India has a highly developed railways and roads network of considerable
size and capacity for transportation of goods & passengers. However,
in spite of a strong case for development of inland water transport, this
sector has remained neglected. Inland Water Transport is operationally
cheaper, high in fuel efficiency and environment friendly. It has a vast
potential to act as an alternate and supplementary mode of transportation
in certain conditions.
The development of infrastructure and services in the IWT sector needs
mobilisation of substantial resources to improve the efficiency and quality
of services. The IWT sector has been thrown open to private sector participation
in consonance with the general policy of liberalization of economy of
India. It is expected that private sector participation in the development
of infrastructure and services in the IWT sector would result in reducing
gestation period for setting up of the new facilities and services and
bring the latest technology and improved management techniques.
AREAS OF PRIVATE PARTICIPATION
areas of private sector participation identified by Government are listed
Ownership and operation of vessels for cargo and passengers
Fairway development and maintenance
Construction and operation of river terminals or river ports
Provision and operation of mechanised cargo-handling systems
Putting up and maintenance of navigational aids
Provision of pilotage services
Setting up and running of IWT training institutions.
major waterways have been declared National Waterways; the Ganga from
Haldia to Allahabad (1620 kms), the Brahmaputra from Dhubri to Sadiya
(891 kms) and the West Coast Canal from Kottapuram to Kollam (205 kms).
Techno-Economic studies have been conducted on many new waterways such
as the Godavari, Krishna, Buckingham Canal System from Kakinada to Marcanum,
the Sunderbans, Goa rivers, Brahmani & East Coast Canal from Talcher
to Paradip & Haldia, the DVC Canal, Barak river etc. which have potential
for immediate development. The 9th Plan provision for the IWT sector is
Rs. 408 Cr. which would be used for creation of necessary IWT infrastructure
in the National Waterways. The goal set for the 9th Plan is a growth of
IWT to capture 20 billion tonne-kms of the cargo which would be about
2% of the total inland cargo, a modest target compared to the status of
IWT in other countries like USA, Europe, China where the private participation
in IWT has resulted in substantial share of cargo by IWT varying from
8-20 percent. The inland waterways in India also offer ample scope for
development and with the anticipated growth in Industry and the demand
for transport infrastructure a shift in mode to IWT dictated by market
forces has become inevitable. The identified cargo projections in various
waterways by 2005 are given below:
Cargo in Mn. Tonne(in Bn.
Waterways No. 1
Waterways No. 2
Waterways No. 3
Coast Canal with Brahmani river
& Tapti rivers
Valley Corpn. Canal(DCV Canal)
The figures mentioned are rough estimates only.
A target of 20 billion tonne-kms would require about 2000 inland cargo
vessels, about 30,000 trained crew, a number of terminals with intermodal
linkages and warehouse/mechanical loading facilities and above all a well
developed/maintained fairway. For this there is a need for small, medium
and large companies and individuals to invest in various fields of IWT.
- I.V. Act 1917 provides for the State Governments to frame Rules regarding
the survey and registration of Inland Mechanically propelled vessels.
Any Indian National can own and operate the vessel anywhere in the country
if registered under the I.V. Act.
IWAI Act 1985
Section 12 of the IWAI Act 1985 empowers the Inland Waterways Authority
to enter into and perform any contract necessary for the discharge of
its functions under the Act.
Section 14 of the IWAI
Act empowers the Authority to provide or permit setting up of infrastructure
facilities for national waterways.
Section 17 of the IWAI Act provides for the Authority, with the previous
approval of the Central Govt. to levy fees and charges at such rates
as may be laid down by regulations made in this behalf for services
or benefits rendered in relation to the use of the National Waterways
for the purposes of shipping, navigation infrastructural facilities
including facilities relating to the berthing of vessels, loading of
cargo and storage of cargo. The fees and charges levied shall be collected
in such manner as may be determined by regulation. ("Regulations"
means regulations made by the Authority under the IWAI Act, 1985).
Section 19 (1) (c) provides for crediting to the "IWAI Fund"
all sums received by the Authority from such other sources as may be
decided upon by the Central Govt.
POLICY MAKING BODY
Policy matters relating to National Waterways are decided by the Ministry
of Shipping under the advice of the IWAI. Reference to Government in these
guidelines shall generally mean the Ministry of Shipping.
IDENTIFICATION OF PROJECTS
following principles will generally be observed in identification of IWT
projects for being taken up with private investment either under a joint
venture with IWAI or any of its subsidiary organisations or under permission
from IWAI without its participation:
The project shows a positive financial and economic internal rate of
Projects of national importance which may have a low FIRR but high EIRR
may also be considered.
Priority would be given to projects satisfying any of the following
Port- hinterland connection
Connecting places not adequately served by other modes
Waterway based recreation activity projects
Government / IWAI will carry out a pre-feasibility study of the project
identified for private investment and results of such studies would
be provided to the prospective investors at a nominal
cost and such details would be published in the National Newspapers
for wide publicity.
A Detailed Project Report (DPR) will also be prepared by the IWAI which
will form part of the tender document. Cost of the DPR study will be
recovered from the successful bidder.
IWAI will also acquire the land wherever required for creation of facilities
and hand over to the party on lease.
IWAI will assist the enterprise in obtaining environment clearance of
Option for IWAI to have equity participation upto 40% of the project
cost on case to case basis.
Govt. support for facilitating long term cargo assurance.
In order to reduce capital cost of the vessel a vessel building subsidy
up to 30% would be provided to the prospective ship owners.
TAX / FISCAL CONCESSIONS
Concession under Section-33 and 33 AC of the IT Act 1986 to be applicable
to the inland vessels as applicable to the sea going ships.
Rate of depreciation of 25% applicable for inland vessels at par with
sea going ships.
Concessions under Section 80 IA-12(CA) of the IT Act 1996 would be available
for investment in IWT infrastructure.
Govt. would permit duty free import of plants, equipment and machinery
for development of inland waterways. (Certification to be provided by
has decided to permit automatically Foreign Direct Investment upto 100%
equity for infrastructure sector. This would be applicable to IWT infrastructure.
concession period comprises of (i) the construction period which will
be project specific and (ii) the period during which the enterprise is
permitted to levy fee and is liable for maintaining the facility which
will be determined on competitive bidding basis and may be upto 30 years.
The concession period may be extended suitably, to cover any default of
the Government in fulfilling its obligations.
projects involving construction, the enterprise is to complete the project
within the period specified for construction, conforming to the standards
and specifications prescribed in the permission given under IWAI Act or
the agreement. Any delay in completion of the project will be to the account
of the enterprise, unless such delay can be directly attributed to the
Government and / or Implementation Agencys. Delays occurring on
account of Government / Implementing Agency would entitle the Enterprise
to an appropriate extension in the construction period, and / or to such
other compensation as the bidding conditions may specify.
HANDING OVER LAND TO ENTERPRISE
land meant for construction of facilities will be given to the enterprise
on lease for the concession period. Any expenditure on stamp duty etc.
incurred on documentation for lease of the land will be borne by the enterprise.
The lease for the land will be suitably extended in the event the concession
period is extended for any reason. The enterprise will not be permitted
to sub-lease the land to any one.
for the projects will be accompanied by a bid security bond which will
be of an amount equal to 1% of the project cost as determined in the
In cases where leasing of Government or IWAIs land or property
is involved, the successful enterprise will be required to furnish an
additional security of an amount equal to 3% of the cost of project
as indicated in the feasibility study. Such Bond would be discharged
after 50% of the works have been completed.
REVOCATION OF PERMISSION
IWAI may revoke the permission for setting up an infrastructure facility
by an enterprise in the following events:
Failure to complete construction work in time without proper justification.
Indulging in activities which may be detrimental to the waterway or
hazardous to the life and property of the users of the waterway.
Indulging in any undesirable or illegal activity by using the facility.
Joint venture partnership for IWT Shipping companies.
Joint venture for setting up of IWT training facilities.
Construction & operation of IWT terminals.
Construction & operation of warehousing facilities.
Physical development of waterway and fairway maintenance.
Provision of navigational aids and pilotage.
Feasibility study by IWAI
Preparation of DPR by IWAI, cost to be recovered later from successful
Finalisation of Bidding Documents by IWAI
Invitation of Bids
Evaluation of Bids
Award of Project
Signing of the Agreement where applicable or issue of permission under
The bidding Documents will, inter-alia, include the terms and conditions
of the permission to be granted under the IWAI Act.
In the case where agreement is to be entered into it shall include rights
and responsibilities of the parties, remedies, scope of project and
its description, standards and specifications, implementation schedule,
operation and maintenance standards, issues relating to transfer of
the project after the expiry of concession period, or after expiry of
the extended period, as the case may be. The consequences of fore closure
of the project by the enterprise, or termination of the agreement by
Government will be brought out in the bidding documents. The preparation
of bidding documents shall address to various risks of the project appropriately,
by properly allocating them between the parties. The documents shall
be got prepared by the Implementing Agency and given to the interested
bidders at least one month before the closing date for submission of
the bids, after due approval of the documents by the Government.
INVITATION OF BIDS
will be received in two covers; one cover containing the technical proposal
and the other containing the financial bid. The financial bid of only
those bidders which meet the minimum technical standards (to be made known
in advance) will be considered for further evaluation. The evaluation
criteria will be stated clearly in the Bid documents.
The proposal for the projects will be evaluated keeping in view; inter-alia;
Experience of the enterprise in the field
Experience of the contractors / consultants
Capacity of the enterprise to raise funds from the market
Financial strength of the enterprise
Quality and adequacy of the organisational and institutional support
proposed for implementation.
The Technical proposal for short-listing of the bidders will be evaluated
and finalised by a Committee constituted by the IWAI. Such evaluation
will be based on the criteria indicated to the bidders while inviting
The period of validity of the bid will be as laid down in the bidding
documents for specific project.
The advertisements for inviting the bids for projects will be issued in
at least two national English daily newspapers, two national Hindi newspapers,
and at least one paper in regional language.
addition, the advertisement will also be issued in India Abroad.
bids will be invited from domestic as well as international bidders.
EVALUATION OF FINANCIAL BIDS
of financial bids will be carried out in the principle of least cost to
AWARD OF THE CONCESSION
evaluation of bids and approval of the award by the Government, a letter
of acceptance of the bid will be issued by the IWAI in favour of the successful
bidder. The letter of acceptance will inter-alia, specify the formalities
to be completed by the successful bidder for signing of necessary documents.
SIGNING OF AGREEMENT
draft of the terms of permission granted under IWAI Act or agreement where
applicable would be provided to the bidders prior to the bidding, which
shall, inter-alia include the form of agreement. The agreement, where
applicable shall be signed by the successful bidder and the IWAI on behalf
of the Central Government. The document granting permission shall be signed
by an authorised officer of the IWAI.
EXCEPTIONAL CIRCUMSTANCES AND FORCE MAJEURE
case of BOT projects, the financial liability of the Government would
be limited, except in cases where the continued collection of fees / charges
by the developer is frustrated by a change in policy of the Govt. or force
majeure such as a law and order situation. Details of the force majeure
clauses, that would be incorporated in the concession agreement would
be finalised in consultation with Ministry of Finance, and with the help
of experts /
In principle, such clauses would be based on a few and balanced allocation
of risks among the participants, reflecting the proposition that risks
would be allocated to the entities that are best placed to manage them.
It would also be necessary to strike a balance between the need to minimise
Governments contingent liability on the one hand and providing acceptable
levels of security and comfort to investors and tenderers on the other
MANAGEMENT OF THE NATIONAL WATERWAYS STRETCH
the purpose of proper management of the National Waterway stretch built
through private investment, the enterprise will have powers to regulate
and control the traffic on the waterway stretch forming part of the agreement
between the IWAI and the enterprise to the extent as determined by the
IWAI will carry out the Regulatory functions. The upper limit of the user
fee applicable for the initial years will be stipulated in the agreement
together with the fee revision formula applicable for the subsequent years
and appropriate upper limit of fees shall be notified by the Government
from time to time. The enterprise will be free to charge less than such
notified fee. The Implementation Agency will ensure that the waterway
facility is available to all the users on equal terms and no user is charged
more than the notified fee, or harassed in any manner or subject to any
unfair or restrictive practices. The Implementation Agency will also ensure
that the waterway facility is maintained to the proper standards. The
Implementation Agency may carry out surprise and periodic checks, and
for any default of the enterprise, suitable penalties on the defaulting
enterprise may be imposed by the Implementation Agency, in accordance
with the terms of the permission granted under the IWAI Act or the Concession
Agreement as the case may be.
PROJECTION OF NATIONAL INTEREST
enterprises will be obliged to protect the national interests like national
security whenever necessary and required. They will abide by various statutory
requirements relating to protection of environment, safety etc. and also
abide by the directives issued by the Government / Implementation Agency
in this regard from time to time, in accordance with the provisions of
the Concession Agreement or the laws in force.
Policy related issues
implementation related issues and for assistance
vessel operation related matters in NW 1 and NW 2
Secretary (Shipping and IWT) Ministry of Shipping 1,Transport
Bhawan NEW DELHI-110 001.Tel.No.3710189, Fax 3722855, email
(Technical) Inland Waterways Authority ofIndia A-13, Sector-01
Noida- 201 301 UTTAR PRADESH Tel.No. 4543931, Fax 4544041, email
Director Central Inland Water Transport Corporation 4, Fairlie
Palace Kolkata -700 001. Tel.No. 033-2435718, Fax 033-2436164