Jalvahak Scheme to Boost Inland Waterways

Syllabus: GS3/ Economy

Context

• The Union government launched the ‘Jalvahak’ scheme to incentivise cargo movement via inland waterways, across National Waterways 1 (Ganga), 2 (Brahmaputra), and 16 (Barak river).

About Jalvahak scheme

• Cargo Promotion and Incentives: 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.
• Implementing Agencies: The scheme is a joint effort of the Inland Waterways Authority of India (IWAI) and the Inland & Coastal Shipping Limited (ICSL).
• Private participation: Cargo owners are encouraged to hire vessels owned or operated by organisations outside IWAI or ICSL to boost private participation in inland waterways transportation.
• Duration: The scheme is initially valid for a period of three years.

Current Status of Inland Waterways in India

• India has an extensive inland waterways network of 20,236 km, comprising 17,980 km of rivers and 2,256 km of canals suitable for mechanised crafts.
• India currently has 111 National Waterways (NWs), as declared under the National Waterways Act, 2016.
• Cargo transported on national waterways increased from 18.07 Million Metric Tonnes (MT) in 2013-14 to 132.89 Million MT in 2023-24 — a growth of over 700%.
• India aims to achieve 200 Million MT of cargo movement via waterways by 2030 and 500 Million MT by 2047.

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.

Challenges in Boosting Inland Waterways

• Infrastructure Deficiencies: Limited availability of modern terminals, jetties, and navigational aids hampers seamless cargo transportation.
• Depth and Navigability Issues: Many river stretches suffer from seasonal fluctuations, affecting their navigability.
• Competition from Road and Rail: Despite incentives, the established dominance of road and rail transport limits the shift towards waterways.
• Regional Disparities: Inland waterways infrastructure is largely concentrated in certain regions, leaving others underdeveloped.

Government Initiatives

• 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.

Way Ahead

• Encouraging greater participation of private players in vessel operations and cargo handling.
• Integration of inland waterways with railways, roads, and coastal shipping to ensure seamless transportation.

Concluding remarks

• India’s inland waterways hold immense potential to transform the country’s logistics landscape. 
• The Jalvahak scheme is a crucial step in this direction, offering incentives to reduce costs and increase cargo movement. 

Source: PIB