Jalvahak Scheme: Revolutionising Inland Waterways Cargo Transport in India
Context:
The Indian government has launched the Jalvahak Scheme, an ambitious initiative to promote the use of inland waterways for cargo transportation. This scheme is designed to incentivise the movement of long-haul cargo via the country’s National Waterways (NW) 1, 2, and 16, which include the Ganga, Brahmaputra, and Barak rivers, respectively. The goal is to reduce logistics costs, alleviate congestion on roads and railways, and promote eco-friendly transportation alternatives.
Key Components of the Jalvahak Scheme:
- Incentive Component: A primary feature of the Jalvahak Scheme is its financial incentive to cargo owners. The scheme provides a reimbursement of up to 35% of the total operating expenditure incurred when transporting goods over 300 kilometers via National Waterways 1 (NW1), 2 (NW2), and 16 (NW16). This includes major routes such as:
- NW1 (Ganga River): Haldia to Patna and Varanasi
- NW2 (Brahmaputra River): Kolkata/Haldia to Pandu/Agartala
- NW16 (Barak River): Pandu to Dibrugarh
This incentive encourages businesses to consider waterways as a cost-effective and sustainable transportation option.
- Scheduled Services by CSL:
- Another key component involves the introduction of scheduled cargo services operated by Inland & Coastal Shipping Limited (ICSL), a subsidiary of the Shipping Corporation of India (SCI).
- These services will operate fixed routes across the designated waterways, ensuring that cargo is transported efficiently and on time. The vessels will carry bulk and containerised cargo, enhancing the appeal of inland waterways as a reliable transport mode.
Objectives of the Jalvahak Scheme:
The primary objectives of the Jalvahak Scheme are:
- Reducing logistics costs: By offering financial incentives, the scheme aims to make inland waterways a competitive alternative to road and rail transport.
- Decongesting roads and railways: Shifting cargo to waterways will alleviate pressure on overburdened road and rail networks.
- Promoting sustainable transportation: Inland waterways offer an eco-friendly transport alternative, reducing carbon emissions and promoting environmental responsibility.
The scheme is expected to divert 800 million tonne kilometers (MTKM) of cargo from rail and road transport to inland waterways, which represents about 17% of India’s current freight movement capacity.
Scheme Funding and Duration:
- The Jalvahak Scheme is proposed with an investment of ₹100 crore over five years. This funding will focus on developing the inland waterways sector and improving the country’s logistics infrastructure. The scheme targets shipping lines, freight forwarders, and trade bodies handling bulk and containerised cargo.
- The scheme will be valid for three years initially, with the potential for extension based on its success.
Growth and Participation in Inland Waterways
India’s inland waterways have been growing steadily, with the total navigable length expanding to 20,236 km. This includes 17,980 km of rivers and 2,256 km of canals, suitable for mechanised vessels. However, freight transportation via waterways remains significantly underutilised compared to countries like the United States, China, and the European Union.
In December 2024, the government flagged off several cargo ships under the scheme, including:
- MV AAI: Transporting 1,000 tonnes of gypsum to Patna
- MV Homi Bhaba: Carrying 200 tonnes of coal to Varanasi
- MV Trishul: Transporting 1,500 tonnes of cement from Kolkata to Pandu in Guwahati via the Indo-Bangladesh Protocol Route (IBPR)
Target Growth and Vision for 2030 and 2047:
The Indian government has set ambitious targets for inland waterway cargo movement. The total volume of cargo transported via national waterways has grown substantially, from 18.07 million tonnes (MT) in FY2013-14 to 132.89 million MT in FY2023-24, representing a 700% increase over the past decade. By 2030, the government aims to achieve 200 million MT of cargo movement via waterways, and by 2047, the goal is to reach 500 million MT, contributing significantly to India’s economic growth and the vision of Atmanirbhar Bharat.
Challenges for Inland Waterway Cargo Operators:
Despite significant growth in the sector, there are still several challenges that hinder the full utilisation of India’s inland waterways:
- Inadequate infrastructure: Many inland ports and terminals lack the necessary facilities and equipment for efficient operations.
- Water depth limitations: The Least Available Depth (LAD) along some stretches affects the cargo load capacity and increases transportation costs.
- Dredging requirements: Regular dredging is needed to ensure sufficient water depth and facilitate year-round operations and night navigation.
To overcome these obstacles, experts suggest developing key stretches, such as the Patna-Prayagraj or Faralda-Haldia routes, as viable alternatives to road transport.
