Private sector investment in inland waterway transport is to be put on fast track. This will help reduce the pressure on Rail and Road transport infrastructure.

Briefing news persons after a meeting on the matter, Principal Secretary to the Prime Minister Pulok Chatterjee said the initiative taken by Dr. Manmohan Singh will involve both public and private sectors. It has huge potential of inland waterways in transporting bulk cargo like coal, food grains, fertilizers and fly ash at a cheaper rate.

The National Thermal Power Corporation – NTPC – has agreed to use the inland waterways to transport three million metric tonnes of coal for Barh power project in Bihar . A PMO statement said that a tripartite agreement has been signed between the NTPC, the Inland Waterways Authority of India and a private developer.

This gives a competitive transportation rates for the NTPC. The statement said private sector investment of about 650 crore rupees has been committed for the Farakka Power Project in West Bengal .