Page 239 - DECO502_INDIAN_ECONOMIC_POLICY_ENGLISH

Unit 19: Sectoral Performance II: Role of Infrastructure in Economic Development

placed on railway transport and the diversion of river water for irrigation purposes. As a result, Notes
inland water transport (IWT) forms a small part of the total transport network of the country. Out of
a total freight traffic of about 550 million tonnes by all modes of surface transport, IWT carries about
17 million tonnes—which is only 0.15 per cent of domestic transportation and there are opportunities
for considerable growth.
Inland river transport is important in Assam West Bengal and Bihar. Out of the 25 lakhs tonnes of
traffic between Assam and Calcutta, river transport accounts for half and the Railways and road
transport account for the rest. Inland transport is highly important in Kerala where rivers and
backwaters are used for transporting goods and people. Inland transport is also of some importance
in Orissa, Andhra and Tamil Nadu.
Total navigable waterways comprising a variety of rivers, canals, backwaters, etc extend to 14,500
kms of which only about 5,200 kms of major rivers and 488 kms. of canals are suitable for operation of
mechanise crafts. Even where waterways are available, the potential has not been fully exploited on
account of various constraints.
Thrust Areas and Strategy in the Tenth Plan

(i) Development of IWT in the regions where enjoys natural advantages.
(ii) Improvement in productivity of assets, throu modernisation and upgradation of technology.
(iii) Building up of trained and skilled manpower for IWT operations.
In order to achieve these objectives, the Ninth Plan is adopting the following measures :
(a) Two national waterways — Ganga and Brahmaputra — are being developed. These would
include dredging and conservacy works to attain and maintain adequate depth and width of
channels, providing adequate navigation aids and setting up integrated terminals to enable
nevigation throughout the year and 24-hour navigation on selected stretches.
(b) Modernisation of IWT vessels and replacement of overaged ones, development of specific vessels
to meet the requirement of different types of cargo to suit different waterways.
(c) Private entrepreneurs will continue to be given interest subsidy for acquisition of better designed
vessels and improved country crafts. Private participation would also be encouraged in setting
up of terminals.
Indian Shipping

Before Independence, Indian shipping companies did not succeed because of severe competition from
foreign shipping companies and lack of support by the foreign rulers in india. It was only the Scindia
Steam Navigation Company which could face foreign competition. At the time of India’s Independence,
there were only 42 ships with less than 1,00,000 tonnes of GRT gross registered tonnage). It was only
after Independence that Indian shipping became predominant in India’s coastal trade and got some
share in foreign trade. Indian ships carried only 2 per cent of the volume of India’s diverseas trade.
Civil Aviation in India

Air transport has a significant role to play. It offers saving in time that cannot be matched by surface
transport over long distances. Air transport helps optimise technological, managerial and
administrative skills in a resource scarce economy.
In 1950, the Air Transport Enquiry Committee known as Rajadhyaksha Committee, was appointed.
The Committee recommended the integration of all companies into four companies so as to remove
cut-throat competition and secure scientific and zonal distribution of work. But since the private
companies did not voluntarily integrate, the Government had to nationlise civil aviation on three
grounds :
(a) Nationalisation would raise operational efficiency;
(b) it would result in better organisation of civil aviation and would enable the Government to get
trained technicians, pilots, etc.; and

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