Central Inland Water Transport dissolution gets Cabinet nod

Voluntary Retirement Scheme for the employees of CIWTC was implemented last year.

The Dollar Business Bureau

Union Cabinet headed by the Prime Minister Narendra Modi has approved for dissolution of Central Inland Water Transport Corporation Ltd (CIWTC) on Wednesday.

The Government of India has incorporated the CIWTC in 1967 under the Companies Act 1956 after the approval of the Calcutta High Court to take over the assets and liabilities of River Steam Navigation Company Ltd.

The operations of CIWTC have been unviable because of the inherent limitation and other infrastructure bottle necks. Due to this, the company had been suffering losses right from the beginning, the Ministry of Shipping said in a statement.

Voluntary Retirement Scheme for the employees of CIWTC was implemented last year with the decision of the Cabinet on December 24, 2014. Currently, the company has just five employees.

The CIWTC dissolution would be started after shifting the assets of the company for better utilisation. Most of the movable assets would be shifted to Inland Waterways Authority of India to offer services on River Brahmputra.

The government has decided to wind up the loss making Public Sector Undertakings (PSUs) in irretrievable cases, whenever it is not possible to revitalise the units.

In another statement, the Cabinet Committee on Economic Affairs (CCEA) has approved for the redevelopment of Berths 8, 9 and Barge Berths of Mormugao Port in Goa at a cost of Rs. 1145.36 crore. The project will be completed in three years under Public Private Partnership (PPP) mode.

The project includes construction of berths, buildings, railway lines, dredging and reclamation and installation of equipment. It will contribute to Goa’s industrial growth particularly in the sectors of steel, power, iron ore, agriculture and cement. This is mainly meant for the export of iron ore.

The Dollar Business Bureau - Aug 31, 2016 12:00 IST