Question : NEW PATTERN OF FINANCING FOR IWT



(a) whether it is a fact that the Government announced new pattern of financing for Inland Water Transport (IWT) sector in the country;

(b) if so, the details thereof;

(c) whether the Government have enhanced the plan outlay of Rs. 668 crores in Tenth Plan for the IWT sector compared to Rs. 308/- crores during the Ninth Plan;

(d) if so, the details of the new projects proposals, both the National and State level projects alongwith incentive package, if any, given State-wise;

(e) whether the Government propose to take assistance from the international financial agencies; and

(f) if so, the details thereof?

Answer given by the minister

MINISTER OF STATE IN THE MINISTRY OF SHIPPING (SHRI SU. THIRUNAVUKKARASAR)

(a) and (b) : Yes, Sir. The pattern for financial assistance by Central Govt. to the State Governments for development of Inland Water Transport under Centrally Sponsored Scheme has been revised. Under the revised pattern, financial assistance by way of grant would be provided up to 100% cost of the approved scheme for North Eastern States including Sikkim and up to 90% cost of the approved scheme to other States under Centrally Sponsored Scheme.

(c) and (d) : Yes, Sir. The head-wise break up of Rs. 668.00 crore provided to IWT sector for Tenth Five Year Plan period, is as under:


Net Budgetary Support-	Rs. 430 crore.
External Assistance-	Rs. 10 crore.
External Commercial Borrowings-	Rs. 136 crore.

(From bonds to be issued by IWAI) Others Rs. 92 crore

(Private Sector participation through Joint venture and BOT)
Total: Rs. 668 crore

Finalization of break up in respect of provisions made under External Assistance, External Commercial Borrowings and Others, items is not feasible at this stage as the development in these fields is presently under progress. Presently, the break up in respect of Net Budgetary Support for the IWT Sector i.e. Rs. 430 crore for Tenth Five Year Plan period has been finalized which is as under:
A.	IWAI 
National Waterway No.- 1 Rs. 189.00 crore National Waterway No. -3 Rs. 65.73 crore Other Schemes (NWs) Rs. 65.00 crore Technical Studies & R & D Rs. 7.00 crore IVBSS/LISS Rs. 45.00 crore Centrally Sponsored Scheme Rs. 20.00 crore
B. CIWTC Rs. 38.27 crore
Total: Rs. 430.00 crore
( Note:-Developmental activities on National Waterway No. 2 are to be undertaken from out of the fund available with the Ministry under the North East Pool ).


There are proposals for declaration of new waterways. Incentive schemes include 30% Inland Vessel Building Subsidy Scheme (IVBSS) under Central Sector Schemes. An initial provision of Rs. 20crore has been kept under Centrally Sponsored Scheme (CSS) for development of IWT in the States during the Tenth Five Year Plan. Details on such schemes will depend on the proposals to be received from State Governments and approved by Central Government.

(e) and (f) : Yes, Sir. Proposal for obtaining External assistance has been processed by the Government. World Bank and Asian Development Bank have shown interest to provide such assistance. However, before giving this assistance they would like to update the studies based on which proposals for assistance were prepared.