Developing Inland Waters of India

The government had an important announcement to make.

“There’s a business opportunity coming up. We want private companies to avail this opportunity. There is a big demand for power in Arunachal Pradesh. In fact in the whole of North East and East. We have already identified locations for setting up thermal power plants. These points are all accessible by rivers. The inland waterways department will make available national waterways to you.


Come along. Get your vessels. The barges will go on a merry go round. Pick up cargo from the dry bulk carriers waiting at the deeps at Sandheads in the Bay of Bengal. Carry the coal up the river to the power plants. Maybe you will get a return cargo of fly-ash. It’s a win-win situation for all.


We produce the power and sell to the consumers. The transporters make money. The people get precious power. The country develops as a whole.”

Wow! What a great plan.

An erstwhile secretary of shipping was given the mike. He had a bold announcement to make.

“Privatize the rivers! If JNPT Bombay can have a private container port why can’t we have private stretches of rivers.”

He looked around at the august gathering to see the effect of his words. Some government officials shifted uncomfortably in their seats.

Next the DG Shipping read out from the prepared notes. But after the above announcement it was difficult to get the attention of the audience. The wind had been taken out of the sails.

Then the experts got their chance to strut their stuff. Professional companies from India and abroad unveiled their customized solutions.

“We have 10 years experience in this business.
We have already set up such a system in Goa.
We have experience in Canada.
We already have a passenger service in national waterway # 1.
Transshipment is the magic word. We can deliver.”
…..and so on.

Till the mike came to a thickset gentleman from NTPC. The owner of the power plants. He is the guy who needs the coal.

“Imported coal is our last option. As a matter of fact it is a stop-gap solution. Our main suppliers are Coal India from the local mines at Dhanbad. Our first priority is supply from the government. I don’t see a long term future in coal coming up the rivers by barges.”

There was a stunned silence in the hall. On one hand the government was exhorting the private players to invest substantially in new barges, in new technology and help in carting the coal up the rivers. On the other hand they were not giving any assurance of cargo.

The mike came to Coal India. The guy was wishy-washy.

“The figures they are asking for is mind-boggling. Maybe we can supply but not right now. Perhaps later.”

Some more skeletons came out of the cupboard. Turns out that the rivers are not sufficiently surveyed. There are no night navigation systems and the charts are inadequate.

The government went into salvage mode.

“Gentlemen, good quality imported coal is the need of the hour. Domestic coal do not meet the standard. Historically there has always been a continuous increase in the demand for power. Unlike nuclear or hydro-electric the thermal plants have a gestation period of 36 to 48 months. Coal has to be transported. Road and rail network is clearly inadequate in the North East. So the only lines of supply we see are the crisscrossing rivers. Even if waterway # 1 is saturated after 8 to 10 years there is # 2. Let me assure you again, there is an opportunity here. “

The private sector was watching quietly. A few questions came up.

“Give us a clear picture. We don’t want any ambiguity.”

After all it was not a child’s game. You don’t invest in substantial tonnage unless there was a reasonable chance to make profits. Looking at the agencies in the panel – NTPC, Coal India, Kolkata Port Trust didn’t exactly set your adrenalins on fire. There were huge vested interests. Sorry. They needed to convince the private sector harder.

It was time for lunch. I had seen enough for the day.

I left my card in the forum.

“Sir, if I can provide any support please let me know.”

I doubt I will get a call. They were big men in the government. They don’t call. They only received calls.

Where was the hurry? It can wait. There is another year or two before I go on a transfer. Maybe to the textile ministry. New industry new issues.

I am guessing. Six months from now the project will be quietly shelved. Two years from now we will have another big seminar. To promote Public-Private-Partnership in the interiors of East and North-East, or some other under-developed region. Which lie under the hard-hold of the entrenched bureaucracy. .

Till then Au Revoir!

Post Script – The above seminar happened six months back. For several years I have been watching the Indian government announce grand plans to develop the inland waters of India. Nothing concrete has happened so far. No wonder the retired bureaucrat had burst out in frustration ‘privatize the rivers’.