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NEW DELHI, Jan. 31

THE Centre has unveiled a 30-per cent Inland Vessel Building Subsidy Scheme (IVBSS) for both public and private sector shipyards with the aim of boosting better cargo and passenger movement on national waterways in the country.

Under the scheme, the Government would provide a subsidy amounting to 30 per cent of the ex-factory price of the inland vessel. The subsidy would be available only for vessels acquired by an Indian inland water transport entrepreneur from any shipyard (both public and private) in the country, an official statement said here.

The scheme would be implemented as a credit-linked subsidy scheme under which a part of the construction cost of the inland vessel would be met by banks and financial institutions. It will be applicable to both cargo and passenger inland vessels meant for operation on the national waterways and would be paid to the prospective ship owner, individual or company.

The scheme will come into effect from April 1, 2002 for a period of five years.

The Chairman, Inland Waterways Authority of India (IWAI), will be the competent authority for sanctioning and releasing the subsidy.

The new subsidy scheme forms part of the fiscal policy package approved by the Union Cabinet last year for promoting private entry into the inland water transport (IWT) sector. It replaces the Loan Interest Subsidy Scheme (LISS) scrapped last year.

While the erstwhile LISS was available only to vessels built at public sector shipyards, the Government has expanded the coverage of the new scheme to private yards as well. The new scheme is also aimed at reducing the burden on private carriers and to enhance their profitability by utilising maximum fairway capacity on the national waterways.

The national waterways comprise the Ganga from Haldia to Allahabad, the Brahmaputra from Dhubri to Sadiya and the West Coast canal from Kottapuram to Kollam along with Champakara and Udyogmandal Canals.

Infrastructural facilities such as fairway, terminals and navigational aids are being provided in the three national waterways to facilitate efficient shipping and navigation. "With these facilities along with the advantage of fuel efficiency, this mode of transport would provide an efficient and economic transportation facility, which in turn is expected to facilitate substantial shift of cargo to inland waterways,'' the statement said.

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