Syllabus: GS3/ Economy
Context
- The Ministry of Ports, Shipping and Waterways (MoPSW) has introduced new regulations, formulated by Inland Waterways Authority of India (IWAI), to streamline processes and promote efficient use of India’s vast waterways network.
Key Highlights of the Regulations
- The National Waterways (Construction of Jetties/Terminals) Regulations, 2025 seek to enhance private sector participation in the development of inland waterway terminals.
- Any entity, including private players, intending to develop or operate an inland waterway terminal must obtain a No Objection Certificate (NoC) from the IWAI.
- The regulations cover both existing and new terminals, including permanent and temporary installations.
- Permanent terminals can be operated for their lifetime by the developer.
- Temporary terminals will initially be granted a five-year term, with an option for extensions.
- Developers and operators are responsible for the technical design and construction of the terminal, ensuring alignment with their business plans and providing adequate access.
| Inland Waterways Authority of India (IWAI) – IWAI, is an autonomous organization constituted in 1986 under the Inland Waterways Authority of India Act, 1985. – IWAI is primarily responsible for development, maintenance and regulation of those waterways which have been declared as National Waterways under National Waterways Act, 2016. – The head office of IWAI is located at Noida. |
Significance of the Inland Waterways
- Reducing Logistics Costs: Logistics costs in India account for 14% of GDP, significantly higher than the global average of 8-10%.
- Decongestion: Promoting inland waterways will help alleviate congestion and reduce the burden on these critical transport networks.
- Eco-Friendly Transport: Reduced fuel consumption and emissions align with India’s commitment to sustainable development goals (SDGs) and its climate action targets.
- Economic Benefits: Increased cargo movement via inland waterways will bolster trade and commerce, especially in regions adjoining National Waterways.
- The cargo movement on national waterways has surged over the last decade, from 18 million tonnes to 133 million tonnes in FY 2023-24.
Government Initiatives
- Jalvahak scheme: The scheme offers direct incentives to cargo owners for transporting goods via inland waterways for distances exceeding 300 km.
- Reimbursement of up to 35% of total operating expenditure incurred during cargo transportation is provided.
- Jal Marg Vikas Project (JMVP): Developing NW-1 with modern infrastructure and terminals.
- Sagarmala Project: Integration of inland waterways with coastal shipping and ports.
- Freight Village Development: Establishing logistic hubs near key waterways to boost multimodal transport.
Concluding remarks
- The National Waterways (Construction of Jetties/Terminals) Regulations, 2025 are a crucial step toward enhancing private sector participation, reducing logistics costs, and promoting eco-friendly cargo transport.
- With increased digitization and policy support, these regulations are set to improve India’s waterway infrastructure, making it a more viable and competitive mode of transportation.
Source: AIR
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