Context:

• The Inland Waterways Authority of India (IWAI) and Indian Oil Corporation Limited (IOCL) signed a Memorandum of Understanding for jointly developing infrastructure for fuels, lubricating oil, LPG, natural gas and any other related fuel and gas for meeting the requirement of national waterways.

About the Agreement:

• The agreement will provide for an understanding over general modalities of mutual cooperation leading to addressing futuristic demand of any form of energy for Inland Waterways and associated services.
• The agreement covers development of infrastructure for receipt, storage, dispensing and supply of fuels, lubricating oils, liquefied petroleum gas for domestic and commercial use, natural gas and any other related fuel and gas.
• It will also cover infrastructure development for setting up of a consumer pump for supplying fuels to vehicles, locomotives, machinery and equipments and retail outlets for fuel and gas at terminals and multimodal terminals.
• The move is expected to lead to development of business activities along the national waterways.
• Besides this, under the agreement, IWAI and IOCL agreed to conduct techno-economic feasibility studies for preparation of detailed land requirement, storage facilities and other supporting infrastructure with details of the cost.
• These studies will be based on the traffic potential, proximity to the local industries and waterways and its connectivity to rail heads.
• The IWAI will extend all necessary assistance in sharing information, providing necessary inputs and available data and information relating to national waterways and its terminals with IOCL for implementing projects.
• The IWAI will also provide land to IOCL on long term lease basis for developing facilities at existing terminals within the approved guidelines of land lease policy of the Government.