The Union Government has decided to give a boost to inland waterways in a big way to reduce the cost of transportation as well as to curb pollution. This was stated by Union Minister of Road Transport & Highways, Shipping, Rural Development and Drinking Water & Sanitation Nitin Gadkari at a Confederation of Indian Industry (CII) meeting here on Tuesday.
“Road sector is very important for us but inland waterways need to be developed as it is much more economical as compared to road and rail transport. And for this, the major rivers of the country need to be connected. We want to encourage inland water transport. A new sector can come up and this can provide large scale employment,” Mr. Gadkari said.
He said that the ministry had also been focussing on the ports sector. He said for road development the government was considering to use cement instead of bitumen to bring down construction cost. “We know that cement manufacturers will jack up prices the moment they see an opportunity in large scale consumption of cement in the road sector. To deal with this, we are talking to cement companies to buy out their entire production at affordable prices by making upfront payment,” Mr. Gadkari said.
The Minister said private sector was shying away from public private partnership (PPP) projects primarily because of high interest rates and reluctance of banks to fund such projects.
“In this situation, foreign investment can prove to be the best source for low-cost funding. We have started considering awarding contracts through the engineering procurement and construction (EPC) route to instil confidence in private players and boost to PPP projects,” Mr. Gadkari said.
Meanwhile, Madhya Pradesh Chief Minister Shivraj Singh Chouhan while addressing the gathering invited investment in food processing industry, tourism and skill development.
