The Hindu Business Line : Shipping Ministry mulls privatisation of CIWTC

THE Shipping Ministry is mulling privatisation of public sector river transport company Central Inland Water Transport Corporation (CIWTC) and has accordingly initiated a move, according to informed sources.

The Ministry, it is learnt, might even suggest winding up of the organisation if response to the privatisation move is found to be inadequate.

While the mode of privatisation is still to be finalised, the Government is believed to be in favour of disposing of the company lock, stock and barrel. The more than 170-year-old organisation has a workforce of 1,154 with an accumulated loss of Rs 150.92 crore and a fleet 100 vessels of various sizes, shapes and capacities, nearly 50 per cent of which is unfit for operation. CIWTC's equity size is Rs 150 crore; it has real estates in Kolkata, North-East and other places.

In addition to running river services along the National Waterways Nos. 1 and 2 (i.e. between Kolkata/Haldia and Allahabad on the Ganga-Bhagirathi-Hooghly river system and between Kolkata/Haldia and Guwahati/Karimgunge along the Brahmaputra river system in the North-east via Bangladesh) and also to Bangladesh, CIWTC also runs a boat-building yard, Rajabagan Dockyard, for undertaking construction and repair of vessels. Three of the four pusher tugs proposed to be built in the Seventh Plan are still under various stages of construction due to the lack of funds. Only one of them "Tuticorin" has joined CIWTC's own fleet a few months ago, while another "Trivandrum" is in advanced stage of delivery.

CIWTC's employees have not been paid salaries for the past eight months, now rolling into the ninth month. Yet, there has been no industrial unrest. There are 16 unions in the organisation. In April 1993, the company had a workforce of 4,034. A total of 1,970 employees have so far opted for the voluntary retirement scheme launched several years ago. Others have left on superannuation.

In 2003-04, the company suffered a loss of Rs 44.62 crore (unaudited). In 2004-05, it has not received any funds from the Government other than Rs 12 crore, of which Rs 7 crore was for the payment of VRS and another Rs 5 crore to meet the capital expenditure. Part of the fund provided for the capital expenditure was used to pay for salaries and wages, it is learnt. The monthly wage bill comes to about Rs 1.5 crore.

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