DPR for development of Lakhipur-Bhanga Stretch of Barak River for Shipping & Navigation CHAPTER 1 INTRODUCTION 1.1 PREAMBLE Rivers constitute an important means of transport in Eastern India comprising of North Eastern States, West Bengal and parts of Bihar. India embarked upon a large programme of agricultural and industrial production which was resulted in substantial increase in the movement of cargo traffic. In addition to the above, the change in economic policy and rapid increase in industrialization during the past and present decade created huge impact on existing traffic movement by various modes. Due to the surge in road traffic, Govt. of India focussed attention in widening and relaying of National Highways including construction of major time bound projects such as Golden Quadrilateral and other express corridors. In similar fashion, dedicated rail corridors for the movement of goods by rail are in the implementation stage by the Government. Hence, it is evident that all modes of transport need to be developed and the vital role which rivers can play in meeting the ever increasing transport needs for a faster economy could not be ignored. Water based transport is effective as generally speaking, operating costs of fuel are low and environmental pollution is lower than for corresponding volumes of movement by road, rail or air. A major advantage is that the main infrastructure “the waterway” – is often naturally available, which then has to be trained, maintained and upgraded. Transport over waterways is especially effective when the source and/or destination are waterfront locations. The potential for this mode of transport has been unquestioned over the years and it forms a significant fraction of ton-km of movement in countries across the world. It is reported that Inland Water Transport (IWT) movement constitute 20% and 32% in Germany and Bangladesh respectively. However, it is noted that IWT plays a very marginal part (0.15%) in India. Inflation is one of the important problems which the country is facing today in which transport cost of commodities is an important factor. Numerous RevisedFinalReport Page1 DPR for development of Lakhipur-Bhanga Stretch of Barak River for Shipping & Navigation studies have argued that Inland Waterways are per se a desirable and environmental friendly mode of transport. IWT is being more energy efficient in comparison with other modes of transport which can help in reducing the transport cost and prices of commodities. For instance, it is observed that a litre of fuel can transport cargo 20 km by road, 80 km by rail and around 100 km by water. Thus, IWT is the least energy consuming and energy efficient mode of transportation in addition to many other inherent advantages. IWT generates more employment per unit of investment in comparison with other forms of transportation. Investments in this sector have not equalled those in rail in early years and road in more recent times, there are proposals for investing in this sector. Keeping in mind the various advantages of inland waterways such as cost effectiveness, relative fuel efficiency and importance of mobility besides welfare and development of remote countries, a number of countries are now taking initiatives to make better use of the existing capacity and making investments in IWT. Several development projects aimed at enhancement of IWT infrastructure and operations are underway in Asia despite the recent declining trend in the usage of the region’s inland waterways. 1.2 IWT IN INDIA Asia is generously endowed with navigable inland waterways. These waterways can play a vital role in the economic development and welfare of inhabitants of rural remote areas of this region by providing accessibility and transport at least cost. Historically, at least on some geographical sectors, IWT has been a viable mode of freight transport. Currently, five major waterways in the country have been designated as National Waterways (NW). NW-1: Ganga-Bhagirathi-Hooghly system, NW-2: Brahmaputra system in Assam, NW-3: West Coast canal system in Kerala, NW-4: Godavari - Krishna rivers & Canals between Kakinada and Puduchery and NW-5 : Brahmani river & Mahanadi delta system along with East Coast Canal. Commercially, the most important sector is the small tidal riverine system in Goa comprising Zuari and Mandovi rivers and the Cumbarjua RevisedFinalReport Page2 DPR for development of Lakhipur-Bhanga Stretch of Barak River for Shipping & Navigation canal. A number of possibilities do exist in terms of in-principle navigable waterways, but the ones that offer some potential (a mix of feasibility and some traffic possibilities) are the riverine inlets along the coast, especially the ones near ports and some of the canal systems as part of larger water resource development projects. A further possibility can conceivably open up if and when the river interlinking project in the country is found viable. The transportation of goods in an organised form is confined to West Bengal, Assam, parts of North East region and Goa in India. The 7th Plan was an important landmark in the development of IWT. The expenditure on this sector in the plan was Rs. 131. 85 crores which were more than the expenditure incurred right up to the end of 6th plan. The following objectives were laid down in the 7th plan for development of IWT sector: Development of IWT in the regions where it enjoys natural advantage, Modernisation of vessels and country crafts to suit local conditions, and Improvement in the productivity of assets. The Inland Waterway Authority has been set up which was a big step forward in helping the accelerated development of IWT. India has about 14,500 km of inland waterways network comprising of rivers, lakes and canals. A comprehensive look has been given for effective and targeted revival and development of the inland water transport as a system and conceptual projection was made in the Working Group Report for the 10th Plan suggesting a total investment of about Rs. 5665 crores from the budgetary support, raising of bonds by IWAI, private investments and external funding. However the approved plan outlay was Rs. 903 crores. As per 11th Plan, about 45 million tons of cargo (2.5 BTKM) is being moved annually by IWT. Inland Waterways Authority of India (IWAI) was constituted in 1986 for the development and regulation of inland waterways for shipping and navigation. However, most waterways suffer from navigational inadequacies such as shallow waters, narrow width, siltation, and bank erosion. Consequently, its operations are currently restricted to RevisedFinalReport Page3 DPR for development of Lakhipur-Bhanga Stretch of Barak River for Shipping & Navigation about 5200 km of major rivers and 485 km of canals suitable for mechanized craft operations. At present, organized cargo transportation is spread over the Ganga River in NW-1, the Brahmaputra River in NW-2 West Coast Canal in NW-3, and Goa and Mumbai waterways. The States covered are Uttar Pradesh, Bihar, Jharkhand, and West Bengal under NW-1; Assam under NW-2; and Kerala under NW-3. A number of private operators provide their services in all the above NWs whereas the public sector Central Inland Water Transport Corporation operates on NWs 1 and 2. With global economy and the WTO regime, there would be greater movement of goods to and fro. This had created a heavy pressure on the already burdened road and rail transport systems. There is limit for expansion of rail and road capacity on account of constraints available land, high cost and environmental factors. In these conditions, IWT can play a supportive role for rail and road movement. The cost effectiveness of IWT can be addressed from the fact that the development of 1 km of highway costs around 7 crores whereas the same amount may be sufficient to develop around 50 km of waterways. There are some hazardous commodities and Over Dimensional Cargo (ODC) which can not be allowed to be transported on road. In view of the above constraints, the development of IWT has been relevant in today’s context. In view of the thrust given to IWT mode as explained above, IWAI has proposed to take up the study to prepare Detail Project Report for development of Lakhipur – Bhanga stretch of Barak River for Shipping and Navigation as per the scope of work elaborated in the subsequent section. RevisedFinalReport Page4 DPR for development of Lakhipur-Bhanga Stretch of Barak River for Shipping & Navigation 1.2.1 Early IWT History Developments in Assam The first voyage to Assam was made by the vehicle Lucknow, under Captain Fox, which left Calcutta on 16th September in 1860. Tea was in fact indigenous in Cachar, but it was only brought to notice in 1855. In 1863 the India General (IG) therefore dispatched the Agra on a voyage to Cachar. The Assam pioneers included three members of that family George Williamson senior, George Williamson junior, Capt. J. H. Williamson and Capt. Williamson. But in 1862 Capt. Williamson left IG and formed a rival concern, the New Rivers Company. On 5th October 1864 Calcutta was stricken by a cyclone of unpredicted violence, most of the sailing vessels in port began hurriedly to take in all unnecessary canvas and batten down hatches. There were 192 vessels excluding boats, at the time in port and most of them were stranded and wrecked. Fortunately for the India General (IG), few of its vessels were in Calcutta at the time and it suffered very little loss. The Oriental Steam Navigation Company and the Commercial Navigation Company went out of business at once. The Bengal Rivers Company got amalgamated with IG. In 1867, IG acquired 4 steamers, 9 flats and 2 hospital ships and at the same time the Ganges Company found itself in financial difficulties and ceased to operate by selling 3 steamers and 2 flats to IG.