View: MV Lal Bahadur Shastri and herald of new era for India's North-East

All this has had a huge multiplier effect. Inflation has hit all economies hard. In the US, it has touched 7.9 percent, the highest since 1982. The UK has recorded 6.2 percent. In India, retail inflation touched 6.1 percent breaching the RBI's 2-6 percent band. Wholesale inflation rose to 13.1 percent.

The long-anticipated hike in domestic fuel prices has happened. Petrol and Diesel prices have increased by 80 paise; domestic cooking gas by Rs 50. This will further have a multiplier impact on prices. Citing soaring energy prices, rating agency Fitch has cut India’s growth forecast for FY 2022-23 to 8.5 percent from 10.3 percent.

Evasion of GST has reduced but not stopped. The cases of fake syndicates issuing invoices, availing non-existent credit continue to be detected. Corruption does not appear to have reduced. Anti-corruption squads in Karnataka raided several officials in mid-March. Detection of a mind-boggling array of disproportionate assets were detected—from property wherein several badminton courts had been constructed, to sandalwood, diamonds, gold and silver to cash.

In the midst of all these depressing happenings, there have also been many positive developments too.

The $400 billion mark target achieved by merchandise exports by March 23 in this financial year is a landmark achievement. This is 37 percent higher than the previous year’s actuals of $292 billion. The previous high of $330 billion achieved in 2018-19 has been comfortably breached. Engineering goods exports has been the star performer.

This achievement has been rightly hailed by the Prime Minister as ‘a key milestone in our Atmanirbhar journey’.

Direct Tax collections touched Rs 13.68 lakh crore till March 16. This is a phenomenal Rs 1 lakh crore more than the revised budget estimate. It is obvious that the robust GST revenue performance and close coordination between CBIC and CBDT is bearing results.

The focus of this article though is on another remarkable development this March. A development that has not had as much coverage. This was the arrival of MV Lal Bahadur Shastri at Pandu Port, Guwahati. This vessel made a 2350 km journey spread over 26 days. The vessel was carrying 200 metric tonnes of food grains and had started its journey from Patna’s inland waterway terminal Gaighat.

What was unique about this journey was that the vessel transited through Bangladesh. It started its sail on National Waterways 1 (river Ganga) through Bhagalpur, Manihari, Sahibganj, Farakka, Haldia in India. The vessel then entered Bangladesh and sailed via Khulna, Nrayanganj, Chaimari and entered India again where it joined National Waterway 2. It journeyed thereafter through Dhubri and Jogighopa before reaching Pandu port in Guwahati on the River Brahmaputra.

India and Bangladesh have a Protocol on Inland Water Transit (PIWTT). This protocol allows mutually beneficial arrangements for use of the waterways of both the countries. Under this Protocol, Inland vessels of both the countries can ply on the designated protocol route and dock at the notified Ports of Call in each country.

Thus, Inland Waterway 1 (River Ganga) is connected to National Waterway 2 (River Brahmaputra) and National Waterway 16 (River Barak) through the Indo-Bangladesh Protocol (IBP) routes. To improve navigability two stretches of the IBP routes are being developed on an 80:20 cost-sharing basis-80 percent being borne by India and 20 percent by Bangladesh.

The Indian transit cargo expected is mainly bulk -coal and fly-ash, for power projects in the NE region. The other potential cargo for movement is fertilizers, cement, food grains, agricultural products. The export cargo from India to Bangladesh is again expected to be mainly fly-ash.

Inland waterways are a much-neglected mode of transportation. India has approximately 5,150 km of waterways spread across 26 National Waterways. As per detailed project reports, these waterways are feasible for development for the purpose of shipping and navigation. While undoubtedly the utilisation of waterways depends on very many factors like the availability of vessels, fairways, and first and last-mile connectivity, the fact remains that waterways have been underutilised.

As per a RITES report, the cost of transportation through Inland water transport is significantly cheaper than by any other mode. It is estimated to be Rs 1.06 per tonne/km as opposed to Rs 1.36 by Railways and Rs 2.50 by highways. This is a huge cost advantage that should be taken advantage of. Waterways have the additional advantage of decongesting roads and being less polluting.

Connectivity with the mainland has always been an issue for the North-Eastern states. Waterway connectivity via Bangladesh could be a major path-breaking solution. MV Lal Bahadur Shastri’s journey should herald a new era of growth for the North-Eastern states.