Emerging Inland Waterway Venture on Brahmani River: With the aim of bolstering trade links, the Central government is preparing for a substantial infrastructure endeavor - a Rs 12,000 crore project to establish an inland waterway on the Brahmani river in Odisha. As per a report by ET, the primary goal of this undertaking is to streamline the movement of goods from four pivotal industrial hubs to the Paradip and Dhamra ports.
The plan for this undertaking involves a strategy led by the government, where the infrastructure aspect will be overseen using an engineering, procurement, and construction (EPC) framework.
A senior government official informed ET that the foundational structure of the project will revolve around a special purpose vehicle (SPV) established collaboratively by Coal India Limited (CIL), Inland Waterways Authority of India (IWAI), Paradip Port, and the Odisha government.
The report also indicated that this cooperative initiative seeks to develop the essential infrastructure for the implementation of National Waterway 5 (NW5). According to the report, the creation of the SPV has already garnered preliminary approval from the respective company boards.
Additionally, the official emphasized that the state government is entirely dedicated to endorsing and implementing this project. Given its demanding financial requirements, considerable financial support from the central government is considered imperative.
The project's effective accomplishment necessitates significant capital infusion, particularly in tasks such as dredging and the establishment of navigational locks to proficiently handle fluctuations in river depths. The official revealed that the financial input of the SPV stakeholders will correspond to their individual ownership percentages within the entity.
Currently, National Waterway 5 (NW5) enables the transportation of 1 million tonne of cargo annually. This amount is anticipated to undergo a significant upswing, with the possibility of reaching 12-14 million tonnes per annum by the year 2030.
As per the Ministry of Ports, Shipping and Waterways, Inland Water Transport is regarded as the most cost-effective means of transportation, particularly for the conveyance of bulk cargo. However, this mode of transportation remains relatively underutilized, constituting only 2% of India's overall transportation mix. In alignment with the Maritime India Vision 2030, the government aims to elevate the contribution of Inland Water Transport to 5%.
