With a view to providing an impetus to development of inland water transport mode, the Government of India had approved Inland Water Transport Policy in January 2001, which includes several fiscal concessions, and policy guidelines for development of this mode and to encourage private sector participation in development of infrastructure and ownership and operation of inland vessels. IWAI is also authorized for joint ventures and equity participation in BOT projects.

IWAI had been making concerted efforts to attract private sector investment in IWT sector through Joint Venture route. A sustained effort has resulted in significant success and, one Memorandum of Understanding (MOU) and three Shareholder's Agreements have been signed between IWAI and respective successful bidders. These are:

1. A new Joint Venture (JV) company namely Royal Logistics (Ship) Ltd has been incorporated with equity participation of IWAI and M/s SKS Logistics Ltd. Share Holders Agreemnt(SHA) for this company was signed at Noida on 3.4.08 bewtween IWAI and M/s SKS Logistics Ltd. Under this JV, six inland barrages of 2000 DWT each are envisagted to be constructed and operated between Kolkata and Pandu. The total cost of the project was estimated as Rs. 33.00 cr. For this JV, the equity of M/s SKS Logistics Ltd will be 70% and that of IWAI - 30%.
2. Another JV compay namely Vivada Logistics Pvt. Ltd has also been incorporated with equity participation of IWAI and M/s Vivada Inland Waterways Ltd. Kolkata. SHA for this company was signed at Noida on 13.5.08. Under this JV two inland barrages of 1500 DWT each are envisaged to be constructed and operated as Rs. 10.00 cr. For this JV, the equity of M/s Vivada Inland Waterways will be 70% and that of IWAI -30%.
3. One more JV Company namely SKS Waterways Ltd has been incorporated with equity participation of IWAI and M/s SKS Logistics Ltd. SHA for this company was signed at Noida on 12.6.08 between IWAI and M/s SKS Logistics Ltd. Under this JV, eight inland barrages of 2000 DWT each are envisaged to be constructed and operated between Kolkata and Mongla (Bangladesh). The total cost of the projectwas estimated as Rs. 44.00 cr. For this JV, the equity of M/s SKS Logistics Ltd will be 70% and that of IWAI - 30%..
4. IWAI had also signed a MoU for incorporation of another JV company with M/s ICM (I) Pvt. Ltd., Kolkata. However, SHA for this company is yet to be signed. The main purpose for formation of this company was setting up and operation on 3 floating jetties in West Bengal for handling of flyash being export to Bangladesh. The total cost of this project was estimated as Rs. 2.70 cr. Equity of IWAI for this JV was to be 10% and that of M/s ICM (I) Pvt. Ltd. as 90%. Further action of incorporation of JV company is being taken by promoter.

SOME IMPORTANT RECENT DEVELOPMENTS