Inland Water Transport (IWT) in India: Jalvahak Scheme

Recently the government launched a major policy called ‘Jalvahak’ to promote cargo movement via inland waterways on National Waterways (NW) along the Ganga, Brahmaputra, and Barak rivers.

About the Jalvahak Scheme

• The Jalvahak Scheme is a joint initiative of the Inland Waterways Authority of India (IWAI) and Inland and Coastal Shipping Ltd (ICSL), a fully-owned subsidiary of the Shipping Corporation of India Ltd (SCIL).
• Ministry: Ministry of Ports, Shipping & Waterways (MoPSW)
• Aim: To unlock the trade potential of inland waterways, reduce logistics costs, decongest road and rail networks, and promote sustainable transportation.
• Eligibility: Cargo owners transporting goods over distances exceeding 300 km via waterways.
• Benefit: Offer 35% reimbursement of total operating costs incurred.
• Waterways Covered: National Waterways 1 (Ganga River), National Waterways 2 (Brahmaputra River), and National Waterways 16 (Barak River) through the Indo-Bangladesh Protocol (IBP) route.
• Validity: The scheme is initially valid for three years.

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About National Waterways 

• Inland waterways are navigable rivers, lakes, canals, and backwaters that are used to transport goods, materials, and passengers
• The National Waterways Act, 2016 declared a total of 111 inland waterways as national waterways, which include five waterways that were previously declared as national waterways.
• Out of the 111 national waterways, 13 are currently operational for shipping, navigation, and the movement of cargo and passenger vessels.

National Waterways (NW 1, NW 2, and NW 16)

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Significance of Inland Water Transport (IWT) in India

• Fuel Efficiency and Cost-Effectiveness: IWT is a highly fuel-efficient and cost-effective mode of transport compared to road and rail.
  • One liter of fuel can move 24 tonnes of cargo over 1 km via IWT, compared to 20 km by rail and 16 km by road.
  • IWT reduces logistics costs, which currently account for 14% of India’s GDP (Economic Survey 2022-23), higher than the global average of 8-10%​​.
• Eco-Friendly Transportation: IWT has minimal environmental impact, producing lower emissions compared to other modes of transport.
  • Increased use of IWT supports India’s commitment to the Paris Climate Agreement and Sustainable Development Goals (SDGs) related to climate action​.
• Alleviation of Congestion on Roads and Railways: IWT offers a viable alternative to road and rail networks, reducing congestion and wear-and-tear on infrastructure.
  • The government aims to shift 800 million tonne-kilometers of cargo to waterways by 2027 through the Jalvahak Scheme​.
  • Kolkata-Varanasi stretch (NW-1) now facilitates scheduled cargo movement, reducing road dependency.
• Boosting Regional and Industrial Development: IWT supports regional industries and trade by providing economical transport options for bulk goods like coal, cement, and fertilizers.
  • Cargo movement on national waterways has increased from 18.07 MMT (2013-14) to 132.89 MMT (2023-24)​.
• Enhanced Connectivity for Remote and Northeastern Regions: IWT improves access to remote areas like Assam and Arunachal Pradesh, connecting them to major trade routes.
  • NW-2 (Brahmaputra) is critical for transporting goods to Guwahati and other Northeastern cities​​.
• Tourism and Employment Generation: Inland waterways serve as hubs for tourism and create jobs in vessel operations, logistics, and related sectors.
  • Kerala’s NW-3 boosts tourism through backwater cruises and supports local livelihoods in hospitality and transport​.
• Economic Viability and Trade Boost: IWT is crucial for fostering trade through international protocols like the Indo-Bangladesh Waterways Agreement, enhancing inter-country cargo movement.
  • The Kolkata-Pandu route via Bangladesh facilitates the shipment of goods such as fly ash and fertilizers to Bangladesh​.

Challenges in Inland Waterways in India

• Inadequate Depth and Navigability Issues: A significant portion of India’s waterways has insufficient depth, making them unsuitable for larger vessels.
  • Seasonal siltation in rivers like Ganga and Brahmaputra creates shoals, restricting year-round navigation. Maintenance dredging is required annually, but it remains inadequate, impacting consistent cargo movement​​.
  • Seasonal nature of Peninsular rivers. 
• Infrastructure Deficiencies: There is a lack of modern terminals, night navigation aids, and vessel repair facilities.
  • India has only a few functional intermodal terminals (e.g., Haldia, Sahibganj, Varanasi), limiting connectivity​​.
  • The absence of night navigation systems like DGPS and RIS hinders seamless operations.
• Underinvestment in IWT Sector: Public investment in inland waterways is much lower compared to road and rail infrastructure.
  • IWT accounts for only 0.4% of India’s total transport share, while road and rail dominate with 60% and 25%, respectively​.
  • Projects like the Jal Marg Vikas Project (NW-1) face funding delays​​.
• Regulatory and Policy Gaps: There is a lack of integration between state and central policies, leading to fragmented development.
  • Differences in state regulations hinder the uniform development of IWT corridors.
  • Modal integration with road and rail remains inadequate, affecting last-mile connectivity​.
• Low Private Sector Participation: Private investments in vessel building and cargo handling are limited due to high capital costs and lack of long-term cargo commitments.
  • Companies hesitate to invest in barge construction without assured traffic​.
  • Vessel-building costs are not subsidized, making private participation less viable​.
• Environmental and Geo-Political Challenges: Rivers face ecological threats like pollution and reduced water flows due to irrigation and industrial activities.
  • Cross-border routes via Bangladesh (Indo-Bangladesh Protocol) face delays due to operational inefficiencies.
  • Energy efficiency of waterways is offset by higher turnaround times along international routes​.
• Lack of Skilled Workforce: There is a shortage of trained personnel for vessel operations and infrastructure management.
  • India’s IWT sector lacks adequate research and training facilities, slowing modernization efforts​.

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Government Initiatives to Boost Inland Waterways in India

• Jal Marg Vikas Project (JMVP) (2014-15): 
  • Objective: Develop National Waterway-1 (NW-1) on the Ganga River from Haldia (West Bengal) to Prayagraj (Uttar Pradesh).
  • Features:
    • Construction of multimodal terminals at Haldia, Varanasi, and Sahibganj.
    • Installation of Digital Global Positioning System (DGPS) and River Information Systems (RIS).
    • Dredging to maintain a Least Available Depth (LAD) of 3 meters for seamless navigation.
  • Fact: The project is supported by a ₹4,633 crore loan from the World Bank​​.
• Inland Waterways Development Council (IWDC): It was established in October 2023 to develop India’s inland waterways and Inland Water Transport (IWT) ecosystem. 
  • Objective: Improving cargo efficiency, Improving passenger movement, and Developing river cruise tourism. 
  • Chaired by: The Union Minister of Ports, Shipping, and Waterways, and includes participation from State Governments and Union Territories.
• National Waterways Act, 2016: Declared 111 waterways across 24 states as National Waterways (NWs).
  • Significance: Provides the legal framework for developing IWT infrastructure and integrating waterways into India’s logistics network​.
• Indo-Bangladesh Protocol (IBP) Routes: Agreement to enhance trade and cargo movement through inland waterways connecting India and Bangladesh.
  • Kolkata-Pandu (Assam) and Kolkata-Dhaka routes facilitate cross-border trade and link India’s northeast with the rest of the country.
  • The IBP route helps avoid the congested “Chicken’s Neck” corridor for northeast connectivity​.
• Sagarmala Project (2015): 
  • Focus: Develop port-led infrastructure and integrate inland waterways with coastal shipping.
  • Initiatives:
    • Establish freight villages and logistics parks near waterways.
    • Strengthen last-mile connectivity between inland terminals and major ports​​.
• Maritime India Vision 2030: Released in 2021 by Ministry of Ports, Shipping and Waterways
  • Aims for the holistic development of India’s maritime sector, encompassing ports, shipping, and waterways.
• Development of Terminals and Navigation Aids:
  • Construction of multimodal terminals to facilitate cargo handling.
  • Deployment of RIS (Real-Time Information System) and DGPS (Differential Global Positioning System) for safe and efficient navigation on NWs.
  • Terminals at Sahibganj and Varanasi cater to coal and fertilizer transport​.
• Tax and Subsidy Support:
  • Inland Waterways Authority of India (IWAI) provides subsidies to reduce operational costs for vessel operators.
  • Comparative Advantage: IWT is more cost-effective at ₹1.06/tonne-km compared to rail (₹1.41) and road (₹2.58)​.
• Kaladan Multimodal Transit Transport Project: conceived in 2008 jointly by India and Myanmar.
  • Objective: Link the eastern Indian state of Mizoram to Sittwe Port in Myanmar through waterways and roads.
  • Significance: Enhances trade and connectivity for India’s northeastern states​.
• Hydrographic Surveys and Dredging Projects:
  • Regular surveys to identify navigable channels and dredging to maintain adequate depth for commercial navigation.
  • Focus Rivers: Ganga, Brahmaputra, Barak, and Godavari

Way Forward for Developing Inland Waterways in India

• Enhanced Infrastructure Development: Focus on building and upgrading terminals, night navigation systems, and vessel repair facilities.
  • Accelerate dredging activities to maintain adequate depth for year-round navigation on key waterways like NW-1 and NW-2.
  • Modernizing infrastructure can attract private sector investments and boost multimodal connectivity​​.
• Policy and Regulatory Reforms: Create uniform regulations across states to ensure seamless navigation.
  • Integrate inland waterways with road, rail, and coastal shipping through a National Integrated Transport Policy.
  • Streamline operations under the Indo-Bangladesh Protocol to reduce delays and costs for international trade​.
• Incentivize Private Sector Participation: Provide tax benefits, subsidies, and financial incentives for private investments in vessel building and operations.
  • Long-term cargo agreements with industries to secure traffic and ensure economic viability of private operations​​.
• Focus on Regional Connectivity: Develop waterways in underutilized regions like the Northeast and peninsular India to boost trade and industrial growth.
  • Strengthen connectivity on NW-16 (Barak River) and integrate it with multimodal networks​​.
• Adoption of Green Technology: Promote the use of clean energy and fuel-efficient vessels to reduce the environmental impact of waterway operations.
  • Introduce electric or hybrid vessels to align with India’s climate action goals​​.
• Capacity Building and Skill Development: Establish training centers to develop skilled manpower for vessel operations and maintenance.
  • Invest in research and development for innovative solutions to navigability and logistics challenges​.

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Conclusion

Inland waterways hold immense potential to transform India’s logistics landscape by offering a cost-effective, eco-friendly alternative to road and rail transport. Strategic investments, policy reforms, and private sector participation are essential to fully harness this mode’s benefits and drive sustainable economic growth.