India has announced the launch of the Jalvahak scheme, a policy initiative designed to incentivise the movement of long-haul cargo via the country’s inland waterways.
The scheme targets National Waterways (NW) One, Two, and 16, which include the Ganga, Brahmaputra, and Barak rivers, respectively.
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It is a collaboration between the Inland Waterways Authority of India (IWAI) and Inland and Coastal Shipping Limited (ICSL) aimed at reducing logistics costs and congestion on roads and railways.
This initiative is complemented by the launch of a fixed day scheduled sailing service of cargo vessels from Haldia for NW One and NW Two.
The service will operate between Kolkata, Patna, Varanasi, and Guwahati, aiming to establish an eco-friendly transport alternative.
The inaugural vessels, MV AAI, MV Homi Bhaba, and MV Trishul with two Dumb Barges Ajay and Dikhu, are transporting a variety of cargo, including cement, gypsum, and coal, to different destinations along the waterways.
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By GlobalDataIndia Ports, Shipping and Waterways Minister Sarbananda Sonowal said: “Jalvahak scheme incentivises long haul cargo on NW1, NW2 and NW16, and provides an opportunity for the trade interests to explore movement of cargo via waterways with positive economic value proposition.
“Further, the regular scheduled freight service, which began from Kolkata, will ensure that the cargo is transported and delivered within a stipulated time frame.
“This will also generate confidence among our users about the readiness of national waterways for regular movement of cargo in an efficient, economical and environmentally responsible mode of transportation.”
The Jalvahak scheme provides a direct incentive to cargo owners, offering up to 35% reimbursement of the total operating expenditure for transporting goods over 300km via these waterways.
The scheme is also expected to attract major shipping companies, freight forwarders, and trade bodies by providing an opportunity to optimise their supply chain networks. The policy is initially set for a three-year duration.
India’s inland waterways, spanning over 20,236km, are crucial for the country’s transportation needs. The use of waterways for freight transport is considerably less in the country compared to nations such as the US, China, and various European Union countries.
With targeted advancements, India’s national waterways could emerge as a crucial artery for the country, enabling more efficient transportation.
In June this year, Indian government approved a Rs76,200 crore ($9.1bn) project to build an all-weather greenfield deep-draft port with road and rail links at Vadhavan, Maharashtra.
