The Union Minister of Port Shipping and Waterways Shri Sarbananda Sonowal gave written replies to the series of questions today in the parliament regarding port development and maritime infrastructure in the country.
In response to a query about the current developments on National Waterway-4 (NW-4), Union Minister Shri Sarbananda Sonowal highlighted that freight activities have commenced with Roll-on/Roll-off (Ro-Ro) services now operational between Ibrahimpatnam and Lingayapalem on the Krishna River, primarily transporting stone chips for construction. It was highlighted that cargo movement on NW-4 has shown significant variation over the years, with considerable quantities recorded from 2018-19 to 2023-24. He referenced an assessment by RITES included in the Integrated National Waterways Transportation Grid Study, which underscores the cost-effectiveness and fuel efficiency of Inland Water Transport (IWT) compared to rail and road transport. Specifically, 1 litre of fuel enables 24 tonne-km of movement by road, 95 tonne-km by rail, and 215 tonne-km by IWT, with IWT operating at a cost of Rs. 1.06 per tonne-km, in contrast to Rs. 1.36 for railways and Rs. 2.50 for highways.
Shri Sarbananda Sonowal replied to the various concerns regarding the environmental impact of increased inland waterways intensity. He highlighted that inland water transport (IWT) is considered an environmentally friendly mode of transport due to its cost-effectiveness and lower pollution compared to road and rail transport.
On questions regarding the extension of National Waterway (NW-3) Shri Sonowal informed, that the Chavakkad to Ponnani stretch has been officially declared as an extension of NW-3, as per the National Waterway Act, 2016. However, the Government of Kerala's recent request to extend NW-3 further south from Kollam and north from Kozhikode to Bekal could not be considered due to a lack of potential cargo in these stretches. The Inland Waterways Authority of India (IWAI) is focusing on the currently declared and economically viable stretches of NW-3, and further extensions are not feasible at this time.
Additionally, there are no plans for equity participation between the Government of India and the Government of Kerala for the extension of NW-3, and thus, the details regarding such participation do not arise.
The Kalughat intermodal terminal in Saran district, Bihar are being constructed at a cost of ₹82.48 crores, was inaugurated in February 2024. It has a capacity of 77,000 TEU per annum, features a berthing structure of 125 meters in length and 30 meters in width, and includes a container storage yard. The terminal is connected to National Highway 19.
Regarding operational issues, siltation of the riverbed is a natural occurrence, which is managed through maintenance dredging. The contract for Fairway Maintenance of the Kalughat Access Channel, which extends 12.5 km, has been awarded, and work is ongoing.
To ensure the terminal becomes operational, the Inland Waterways Authority of India (IWAI) has already engaged an Operation & Maintenance Operator.
Shri Sarbananda Sonowal provided an update on port development in Andhra Pradesh. The Government of India has not conducted recent studies into the operations of all major and non-major ports in the state. However, following a request from the State Government, the Ministry engaged L&T Infra Engineering Limited under the Sagarmala Scheme to prepare a detailed project report for the "Improvement of Kakinada Anchorage Port Facilities."
Under the Sagarmala Scheme, financial assistance has been provided for 13 projects in Andhra Pradesh, totaling approximately ₹2,500 crores. These projects include Ro-Pax and passenger jetties, fishing harbors, port modernization, and skill development. Of this amount, ₹450 crores have been sanctioned for development. The specific projects funded under Sagarmala in Andhra Pradesh are detailed in Annexure-I.
Currently, inland waterways projects are not included in the Environmental Impact Assessment (EIA) Notification 2006, and therefore, do not require environmental clearances. As such, there are no proposals to include these projects in the list of activities requiring such clearances. The development of IWT is expected to have a minimal carbon footprint and is less likely to cause long-term environmental impacts compared to traditional transport modes. Consequently, the Government does not foresee the need for additional environmental clearance processes for inland waterways projects.
Under the coastal shipping 15 Sagarmala projects, amounting to Rs. 849 crores, have been completed to establish coastal berths and Ro-Ro/Ro-Pax jetties. Key initiatives also include easing licensing requirements under the Merchant Shipping Act, providing a 40% discount on vessel and cargo charges at major ports, and implementing priority berthing policies. Additionally, the reduction of GST on bunker fuels from 18% to 5% and the introduction of green channel clearance for expedited cargo evacuation are significant steps. The government is also facilitating reimbursement of freight subsidies for coastal shipping and improving first and last mile connectivity to ports through collaborations with the Ministry of Railways and the Ministry of Road Transport and Highways.
Apart from this, the advancement of fishing harbours under the Sagarmala Project, with several sanctioned and completed in various states. The fund allocation is governed by the Sagarmala Funding Guidelines and depends on factors including project clearances, physical progress, and the submission of Utilisation Certificates.
Addressing the challenges in port development, Minister noted issues such as securing significant funding, delays in land acquisition, capacity constraints, and inefficiencies in logistics and connectivity. To tackle these issues, the Government has introduced the Sagarmala Programme to enhance port infrastructure and promote port-led industrialization. The National Logistics Policy of 2022 aims to improve logistics operations, and the Maritime AmritKaal Vision 2047 outlines a strategic plan for developing top-tier ports. These initiatives are designed to address the multifaceted challenges facing port development.
In his written statement, Shri Sonowal detailed the Government's efforts to enhance trade links and port capacities. He noted that public-private partnerships (PPP) are being promoted to connect Northern, Western, and Central India with global markets by leveraging private sector expertise. The Holistic Development Plan for the Great Nicobar Islands includes the creation of an International Container Transshipment Hub at Galathea Bay, which is expected to be established as a significant shipping hub. For FY 2023-24, Major Ports processed 819 million tonnes of traffic. Additionally, the recent launch of the Port Health Organisation (PHO) module within the National Logistics Portal aims to streamline ship permissions and improve overall operational transparency and efficiency.
Over the past five years, various projects have been implemented under the Coastal Community Development initiative of Sagarmala Scheme in Andhra Pradesh, including Eluru district. Notably, the initiative has focused on skill development for youth, with a significant portion of the funds allocated to this area. In Eluru district, the initiative has had a substantial impact. To raise awareness of these programs, the Job Resource Persons of the Society for Employment Generation and Enterprise Development (SEEDAP), which implements the Sagarmala-DDUGKY program, have actively engaged with local Self Help Groups, women, and coastal department staff to promote the initiative.
Shri Sonowal provided an update on the Beypore Port in Kerala. Beypore is classified as a Non-Major Port and falls under the administrative control of the Government of Kerala. The state government is actively involved in improving the port's infrastructure. Initiatives include conducting an environmental impact assessment for a capital dredging project, expanding the length of the existing wharf, acquiring land for new cargo handling facilities, and enhancing road connectivity through a study and TEFR submitted by Indian Port Rail and Ropeway Corporation Limited (IPRCL).
Regarding modernization, the Government of Kerala is focused on expanding the port's capabilities to handle larger vessels and increased cargo. The state is also addressing the lack of adequate shipping services between Beypore and Lakshadweep. The draft at Beypore is currently insufficient for all-weather passenger ships, but the capital dredging project aims to rectify this issue. Additionally, the upcoming commissioning of the Vizhinjam mother port is expected to increase container feeder ship calls at Beypore, potentially improving shipping services and connectivity.
To attract more shipping service providers, the state government is working on these infrastructure improvements and exploring ways to enhance the port's overall capacity and connectivity.
He also updated the parliament on the initiative to turn lighthouses into tourism projects. He highlighted that 75 lighthouses across 10 States and Union Territories have been transformed into tourist attractions, with these projects completed and officially launched on February 28, 2024. Maintenance of these sites is funded through central budget allocations, and the Government is also working on an online ticketing system to improve visitor access and experience at these newly developed tourism sites.
On the Vizhinjam International Port, Shri Sonowal clarified that Government has received no proposal from Kerala Government regarding fund requirements of Rs. 5,000 crore for its second phase plan expansion, as the Concessionaire will fund for all future capacity increases.
On the question raised on development of multi-modal ports in India. Shri Sonowal provided a reply confirming, that the Union Cabinet has approved the development of a new Major Port at Vadhavan near Dahanu in Maharashtra. This project, with a total cost of ₹76,220 crores, will feature nine container terminals, four multipurpose berths, four liquid cargo berths, a Ro-Ro berth, and a Coast Guard berth, aiming to achieve a cumulative capacity of 298 million metric tons (MMT) per annum, including approximately 23.2 million TEUs (Twenty-foot Equivalent Units) for container handling. However, there are no identified locations in the State of Telangana for the development of such multi-modal ports, and consequently, the issue of earmarked or released funds for Telangana does not arise.
In his written reply, Shri Sarbananda Sonowal detailed the status of the Outer Harbour Container Terminal Project at V.O. Chidambaranar Port (Tuticorin). He confirmed that the Government has approved the project, which will be undertaken on a Public-Private Partnership (PPP) basis. The total estimated cost for the development of the terminal is ₹7,056 crore, which includes ₹1,950 crore designated for Viability Gap Funding to support the project's financial viability. This initiative is expected to significantly boost the port's container handling capacity and overall efficiency.
He also provided written statement of questions regarding the Indian Port Rail and Ropeway Corporation Limited (IPRCL) and its efforts to enhance connectivity to Kandla Port. IPRCL conducted a comprehensive feasibility study in January 2018 for a new rail route connecting Jaisalmer, Barmer, and Bhavtada via Sanchor to Kandla Port. The study, which included traffic, financial, and engineering reports, estimated the project's cost at ₹2,177.01 crores for diesel traction and ₹2,555.71 crores for electric traction. IPRCL submitted a detailed report and roadmap to the Government of Rajasthan on December 20, 2021, outlining steps for project preparation, stakeholder onboarding, and formation of a Joint Venture (JV) or Special Purpose Vehicle (SPV) for implementation. The Ministry of Ports, Shipping, and Waterways has also requested the Ministry of Railways to include this high-value project under the PM Gati Shakti plan to facilitate its execution.
These updates reflect the Government's ongoing commitment to advancing India's maritime infrastructure and enhancing port operations. By investing in new projects, improving safety standards, and promoting efficient transport modes, the Government aims to bolster India's position as a key player in global trade. Through strategic initiatives and partnerships, India is poised to achieve significant growth in its maritime sector, ensuring that ports and shipping routes continue to support economic development and international trade.
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