For the first time, the inland water transportation (IWT) sector will have public-private joint ventures (JVs) for the purpose of vessel building and construction of terminals. The Inland Waterways Authority of India (IWAI) will set up three JVs for acquiring 16 vessels for Rs 60 crore. It will also set up a JV with NTPC for the same.

“IWAI will have 30% equity in the joint ventures. The joint ventures, which will be set up this year, will acquire 16 inland vessels of 2,000 million tonne capacity,” an IWAI official said.

The authority has also got government nod for setting up three JVs for the construction of three jetties at Bandel, Kolaghat and Budge-Budge on National Waterways (NW)-1.

IWAI will form one JV with Vivada, an inland water transport company, and two with Mumbai-based coastal shipping firm SKS. NTPC will be partnering IWAI along with private operators for setting up a JV for vessel acquisition.

“NTPC needs 3-4 million tonnes of coal every year for its plant at Farakka. It requires 30 vessels exclusively for ferrying coal between Haldia and Farakka on NW-1,” the official said.

The IWT sector is warming up to public-private partnerships. However, large operating costs and travel time make commercial operations unviable and unattractive.

The existing three NWs too aren’t fully functional. The shipping ministry has committed to the Planning Commission that the three waterways would be made fully functional by the year 2007-08.

“So far, total public expenditure in the IWT sector has just been Rs 350 crore. With private investment, we are hoping that the sector would catch up,”

he said. The shipping ministry has put forward a budgetary allocation proposal of Rs 600 crore for 2007-08. Budgetary allocation in 2006-07 was just Rs 150 crore.The government has identified IWT as one of the priority sectors in infrastructure. The National Maritime Development Programme (NMDP) envisages an investment of about Rs 10,500 crore for the development of the sector.