Govt unveils 'Jalvahak' incentive scheme to boost cargo movement via waterways

Kolkata: The Union government on Sunday launched the 'Jalvahak' scheme to incentivise cargo movement via inland waterways, marking a major step towards promoting sustainable and cost-effective transportation across National Waterways 1 (Ganga), 2 (Brahmaputra), and 16 (Barak river).

Union Minister of Ports, Shipping & Waterways Sarbananda Sonowal flagged off three cargo ships and inaugurated the fixed scheduled service of vessels.

He said the scheme aims to unlock the trade potential of inland waterways while reducing logistics costs and decongesting road and rail networks.

Under the scheme, cargo owners transporting goods over distances exceeding 300 km via waterways will receive up to 35 per cent reimbursement on operating costs.

The scheme will remain valid for three years and is designed to optimise supply chains for major shipping companies, freight forwarders, and trade bodies.

The scheme is jointly implemented by the Inland Waterways Authority of India (IWAI) and Inland & Coastal Shipping Ltd (ICSL), a subsidiary of the Shipping Corporation of India.

The cargo promotion scheme is projected to facilitate a modal shift of 800 million tonne-kilometres with an estimated investment of Rs 95.4 crore by 2027, a statement said.

The fixed-schedule sailing service will ply vessels between Kolkata-Patna-Varanasi and Kolkata-Pandu (Guwahati) routes, demonstrating the readiness of waterways for efficient and eco-friendly cargo transportation.

"The Jalvahak scheme incentivises long-haul cargo transport and ensures timely delivery through regular freight services. This initiative provides a positive economic value proposition to trade while advancing Prime Minister Narendra Modi's vision of transformation via transportation," Sonowal said.

Sonowal flagged off three vessels - MV Trishul carrying 1,500 tonnes of cement to Guwahati via the Indo-Bangladesh Protocol Route, MV Aai with 1,000 tonnes of gypsum to Patna for a cement company and MV Homi Bhaba transporting 200 tonnes of coal to Varanasi.

Highlighting the sector's growth, Sonowal said cargo volumes on national waterways have increased from 18.07 million tonnes in 2013-14 to 132.89 million tonnes in 2023-24, registering over 700 per cent growth. He added that the government aims to achieve 200 million tonnes by 2030 and 500 million tonnes by 2047.

Union Minister of State for shipping Shantanu Thakur told reporters that there is no concern in bilateral trade despite ongoing Bangladesh unrest and government has been keeping a close watch.

India has an extensive inland waterway network spanning 20,236 km, but its freight transport potential remains under-utilised compared to countries like the US and China.

Meanwhile, UltraTech had leveraged inland and coastal waterways to transport 57,000 metric tonnes of phosphogypsum from Paradeep port in Odisha to UltraTech's integrated manufacturing unit Gujarat Cement Works located in Amreli, Gujarat, in a first-of-its-kind initiative in India in 2023.

Guided by its sustainable supply chain Framework, UltraTech said it aims to cultivate a resilient supply chain that supports its business and mitigates risks, a company statement said.