India is planning to build an industrial water transport corridor in the east. The plan, backed by Coal India, Paradip Port Authority (PPA) and the Inland Waterways Authority of India (IWAI), would cater to a major industrial cluster in India for the movement of finished products like aluminium, steel, sponge iron, and fertilisers. As per the reports, Coal India and the state waterways organisation expect to spend up to INR 120 billion ($1.46 billion) for the water transport corridor.
The corridor, which could handle 12 to 15 million tonnes of cargo by 2030, would link two ports in the eastern state of Odisha through the Brahmi River. According to the individuals, who refused to provide their names because they were not authorised to talk to the media, the project intends to decongest and relieve strain on the current rail and road infrastructure in an area filled with mines, steel and fertiliser industries.
Waterway transport costs around two-thirds of that of railroads and half of that of road transport. The corridor would also assist in delivering coal to power plants in parts of India's increasingly industrialised southern and western regions, which have been beset by power outages caused by coal shortages caused by a lack of railway rakes.
Most coal transported to power plants is being transported by state-owned Indian Railways. The planned corridor would also link four of Odisha's important industrial clusters. Companies like Jindal Steel and Power, Adani Enterprises, Tata Steel, ArcelorMittal, National Aluminium Co, NTPC, and Indian Farmers Fertiliser Cooperative are housed in the four clusters.
According to the sources, once the canal is operational, private and public enterprises will be invited to provide terminal and freight services. Sources stated that a thorough project report would be completed over four to five months.
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