Introduction
- The Jalvahak Scheme, introduced by the Central Government, marks a significant leap in promoting cargo transportation through India’s inland waterways.ย
- This initiative, focused on National Waterways 1 (Ganga), National Waterway 2 (Brahmaputra), and National Waterway 16 (Barak), offers financial incentives to encourage the movement of goods via water.ย
- Under this scheme, the government reimburses up to 35% of operating expenditure, presenting a great opportunity for trade stakeholders.ย This step is part of India’s strategy to develop its Inland Water Transport (IWT) system, boosting economic value while reducing transportation costs and carbon emissions.
What is Inland Water Transport (IWT)?
- Definition: Inland Water Transport (IWT) refers to the movement of people, goods, and materials over navigable water bodies like rivers, canals, lakes, and other inland waterways. It is an efficient, cost-effective, and environmentally friendly mode of transport, especially suited for bulk cargo such as coal, cement, food grains, and fertilizers.
- Status of Inland Waterways in India: India has vast potential to harness its extensive river network for transport, which remains largely untapped.ย
- The National Waterways Act, 2016 has recognized 111 National Waterways (NWs) across 24 states for the development of IWT. These waterways comprise 5 existing and 106 new waterways.
- ย Through rigorous techno-economic feasibility studies, 26 National Waterways have been identified as viable for both cargo and passenger movement.
- The cargo movement on these national waterways has seen significant progress, increasing to 133 million tons in FY 2024.ย
- Over the last decade, cargo volume on inland waterways has grown at an impressive CAGR of 22.1%, showcasing the expanding potential of this sector.
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Key Advantages of Inland Waterways in India
- Cost-Effective Transportation: One of the most significant advantages of IWT is its cost-effectiveness. It is 60% cheaper than road transport and 20-30% cheaper than rail transport.
- A study on National Waterway 1 (Ganga) estimates that transporting goods like coal can cost around โน1,200 per tonne via water, compared to โน3,000 per tonne by road. This makes it an ideal solution for bulk freight, which drives down the overall logistics costs for businesses and improves the competitiveness of Indian exports.
- Energy and Fuel Efficiency: IWT is a highly fuel-efficient mode of transport. According to the Integrated National Waterways Transportation Grid Study, 1 liter of fuel can move 24 tons for 1 km on roads, 85 km on rail, and 105 km on inland waterways. This makes IWT a highly sustainable option, cutting down fuel consumption significantly.
- A significant example is the movement of fertilizers from the Kolkata port to the Vishakhapatnam port via the National Waterway 1 (Ganga), which reduces fuel usage by over 30% compared to road transport.ย
- Environmental Benefits: Inland waterways have a much lower carbon footprint compared to other transport modes. IWT emits 10 times less CO2 per ton-kilometer than road transport, which helps reduce the overall environmental impact, contributing to lower greenhouse gas emissions.
- Minimized Land Acquisition: Developing inland waterways reduces the need for large-scale land acquisition, which is often a controversial and time-consuming process in road and rail projects. The water-based infrastructure is far less disruptive, making it more socially acceptable.
- The National Waterway 2 (Brahmaputra), which connects Assam with the rest of India, is an example of leveraging a natural water body, reducing the need for extensive land acquisition while improving connectivity in remote northeastern India.
- Job Creation: The development and expansion of IWT create a significant number of employment opportunities in vessel operation, terminal management, river conservancy, tourism, and other related sectors. This job creation supports local economies, particularly in rural and underserved regions.
- According to the Inland Waterways Authority of India (IWAI), over 10,000 direct jobs are estimated to be generated in the operation of vessels, dredging, and the management of terminals along the National Waterways.ย
- Additionally, tourism has seen a significant uptick with the development of river cruises and heritage tourism along rivers like the Ganges and Brahmaputra, creating jobs in tourism services, hospitality, and guiding.ย
- For example, the Mandu river cruise on National Waterway 1 has opened up tourism-related employment in Uttar Pradesh and Bihar.
- Enhanced Connectivity: IWT improves regional connectivity, particularly for remote and underserved regions. It connects hinterlands with major ports and cities, and plays a vital role in linking the northeastern states with the rest of the country.
- National Waterway 16 (Barak) connects the northeastern states with Bangladesh, strengthening cross-border trade and boosting regional economic ties.ย
- Tourism Development: Inland waterways also hold the potential to boost tourism through river cruises and heritage tourism along riverbanks. This adds to passenger movement and promotes cultural tourism, enhancing local economies.
- Kochi-Muziris Biennale in Kerala has been promoting tourism along the backwaters, offering an example of how IWT can be combined with cultural festivals to enhance regional tourism.
Key Government Initiatives for Inland Waterways Development
- Maritime India Vision 2030: Under this vision, the Inland Waterways Authority of India (IWAI) aims to increase the share of IWT in freight transport from 2% to 5%. The goal is to achieve a cargo volume of over 200 million metric tons (MMT), laying the foundation for a more efficient and sustainable transportation network.
- Jal Marg Vikas Project (JMVP): The Jal Marg Vikas Project is aimed at enhancing the navigational capacity of National Waterway 1 (Ganga). Supported by the World Bank, this project focuses on channel deepening, improving terminal infrastructure, and establishing navigational aids to enhance transport efficiency.
- Sagarmala Programme: The Sagarmala Programme is a comprehensive initiative to promote multi-modal connectivity, including inland waterways, rail, road, and coastal transport. It envisions the creation of an integrated transport grid that will enhance both domestic and international trade.
- Interlinking of Rivers Programme: This program seeks to enhance the navigability of India’s rivers by linking them, thereby creating a unified and efficient inland water transport network that can facilitate smooth cargo movement across the country.ย
Challenges Faced by Inland Waterways in India
- Infrastructural and Technical Limitations: Many of Indiaโs rivers suffer from inadequate depth and high siltation, especially in the northern regions. This necessitates extensive dredging to maintain the depth of the water, which is costly and time-consuming. In FY 2023, the government spent over โน350 crore on dredging operations alone along the Ganga to ensure uninterrupted movement of cargo.
- Lack of Modern Terminals and Facilities: The absence of modern terminals and maintenance, repair, and overhaul (MRO) facilities for vessels impacts the operational efficiency of IWT. Without these facilities, the movement of goods is delayed, and operational costs rise. In Assam, the Dibrugarh terminal is one of the key ports on National Waterway 2, but it remains underdeveloped with limited facilities. The terminal struggles to handle the increasing volume of goods, especially bulk cargo like tea and timber, which are transported along the river.ย
- Environmental Concerns: Dredging, a key activity in maintaining navigability, has environmental implications such as riverbed damage and harm to aquatic life. Furthermore, there are concerns about potential community displacement due to ecological impacts, which may lead to resistance to certain development projects. The National Green Tribunal (NGT) has raised concerns about the environmental risks associated with extensive dredging activities in ecologically sensitive regions like Assam, delaying many projects.
- Technical Barriers: Low vertical clearance from bridges and the lack of night navigation facilities hinder the safe passage of larger vessels. The absence of Differential Global Positioning Systems (DGPS) also hampers night-time navigation, which restricts operational hours and efficiency.ย
- For example, in National Waterway 1 (Ganga), the Farakka Barrage is one such obstacle. The low clearance under the barrage restricts the movement of larger vessels, causing delays in transportation.
- Institutional and Regulatory Challenges: The sector faces regulatory complexities and overlapping jurisdictions between multiple authorities such as the Central Inland Water Corporation (CIWTC), state governments, and port authorities. This fragmentation slows down decision-making and impedes the implementation of policies.
- For example, the development of National Waterway 3 (West Coast Canal), which connects Kochi to the Kollam in Kerala, faced delays due to the involvement of multiple agencies and differing priorities between the central and state governments.ย
- Inadequate Funding: The significant financial requirements for dredging, infrastructure development, and vessel construction are not being adequately met by either the government or private investors, limiting the sector’s growth.
- Despite significant progress made with projects like the Jal Marg Vikas Project (JMVP), which is funded with World Bank assistance, the funding gap remains, limiting the ability to scale up dredging operations and improve terminal infrastructure.
- ย For example, ongoing dredging efforts along National Waterway 1 have not been sufficient to achieve year-round navigability, particularly in regions like Uttar Pradesh and Bihar, where the siltation issue continues to impact the waterways.
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Way Forward
- Streamline Governance: NITI Aayog advocates for the establishment of an overarching regulatory body to streamline the governance of the IWT sector, ensuring better coordination among stakeholders and faster decision-making processes.
- Develop Year-Round Navigation: To facilitate year-round navigation, efforts must be made to deepen river channels to at least 2.5-3 meters. Additionally, continuous dredging must be undertaken to ensure that water levels are maintained for efficient cargo movement.
- Facilitate River-Sea Movement: Simplifying the process of using dual-purpose vessels that can navigate both inland and coastal waters will lower transportation costs and enhance operational efficiency.
- Focus on the Northeast: Developing new ports along the Brahmaputra and Barak rivers in the northeastern region will enhance trade and regional connectivity. Extending the India-Bangladesh Inland Waterways Protocol will further promote cross-border trade and regional integration.
- Strengthen Public-Private Partnerships: To bridge the investment gap, the government should encourage private sector participation in areas like terminal development, cargo handling, and vessel construction, fostering innovation and improving sector efficiency.
- Boost Economic Activities Along Waterways: Promoting industries, including PM Mitra Parks and mega food parks, along the National Waterways routes can stimulate economic activity and make better use of inland waterways for transporting goods.