Govt Unveils ‘Jalvahak’ To Boost Inland Waterways, Cargo Movement Incentivised on NW1, NW2 & NW16

The Union Minister of Ports, Shipping & Waterways (MoPSW), Shri Sarbananda Sonowal unveiled a major policy for Cargo Promotion – ‘Jalvahak’ – incentivising movement of long haul cargo via National Waterways 1 (river Ganga) as well as for National Waterways 2 (river Brahmaputra) and National Waterways 16 (river Barak) here today.

The Union Minister Shri Sarbananda Sonowal also flagged off cargo ships – MV AAI, MV Homi Bhaba along with MV Trishul with two Dumb Barges Ajay & Dikhu – from the GR Jetty here today. This marks the beginning of fixed Scheduled Service of Cargo Vessels from Haldia for NW 1 and NW 2. The Fixed Day Scheduled Sailing Service will ply vessels between Kolkata – Patna – Varanasi – Patna – Kolkata stretch of NW 1 and between Kolkata and Pandu in Guwahati on NW 2 via Indo Bangladesh Protocol Route (IBPR). The Union Minister of State for MoPSW, Shantanu Thakur and Minister of State for Transportation (Independent Charge), Govt of UP, Daya Shankar Singh also joined the significant occasion.

Speaking on the occasion, the Union Minister Shri Sonowal said, “Under the dynamic leadership of Prime Minister Shri Narendra Modi ji, the Government has made a concerted effort to realise the tremendous potential of our rich network of inland waterways. With its advantage of being an economical, ecologically sound and efficient mode of transportation, we want to boost cargo movement via waterways, to decongest the railways and roadways. 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. By empowering our vessel operators with this incentive scheme and encouraging our business enterprises with safe and timely delivery of cargo in a cost effective manner, this adds meaningfully to the Honourable Prime Minister Shri Narendra Modiji’s vision of transformation via transportation as India sails towards becoming a Viksit Bharat.”

The first vessel – MV Trishul with two Dumb Barges Ajay and Dikhu – is carrying 1500 tonnes of cement from GR Jetty in Kolkata to Pandu in Guwahati via Indo Bangladesh Protocol Route (IBPR). The second vessel – MV Aai – is carrying 1000 tonnes of Gypsum to Patna while the third vessel – MV Homi Bhaba – is carrying 200 tonnes of coal to Varanasi.

The cargo promotion scheme provides direct incentive to the cargo owners to transport their goods via inland waterways for a distance of more than 300 kms. This is a joint effort by the Inland Waterways Authority of India (IWAI), the nodal agency of waterways development in the country, as well as by the Inland & Coastal Shipping Limited (ICSL), a fully owned subsidiary of the Shipping Corporation of India Limited (SCIL). The ‘Jalvahak’ scheme encourages to reduce logistics costs, decongest road and railways, and adapting to a sustainable mode of transportation.

The ‘Jalvahak’ scheme offers reimbursement upto 35% of total operating expenditure incurred while transporting cargo via waterways on NW 1 (Ganga river), NW 2 (Brahmaputra river) & NW 16 (Barak river) via  Indo Bangladesh Protocol (IBP) route. To encourage the business proposition of vessel operators, the scheme encourages cargo owners to hire vessels owned or operated by organisations other than IWAI or ICSL. The incentive scheme is ideal for major shipping companies, freight forwarders, trade bodies and associations that handle bulk and containerised cargo. By opting for the scheme, it provides them an opportunity to optimise their supply chain network. The scheme is initially valid for 3 years.

The commencement of Fixed Day Scheduled Sailing Service is aimed at demonstrating readiness of waterways as a viable, economic and ecologically responsible alternative for cargo transportation. To be operated by ICSL, the service is launched for NW 1 (Ganga) and NW 2 (Brahmaputra) with fixed timeline for transportation & delivery of cargo. On the NW 1 stretch between Kolkata and Varanasi via Patna, the transit time is fixed at 7 days for Kolkata to Patna stretch, 5 days for Patna to Varanasi and 14 days for Kolkata to Varanasi stretch. Similarly, for the cargo transit on NW2 via IBPR, the Kolkata to Pandu stretch is fixed at 18 days while Pandu to Kolkata is fixed at 15 days. Initially, this scheme will be valid for a period of 3 years.

Speaking further, the Union Minister of Ports, Shipping & Waterways, Shri Sarbananda Sonowal said, “Under the dynamic leadership of Prime Minister Shri Narendra Modi ji, the rich inter-web of waterways are being rejuvenated since 2014. With continuous investment in revamping the waterways, we are expecting a significant turnaround for waterways as these schemes aim at modal shift of 800 Million Tonne Kilometres with an investment of ₹95.4 crores by 2027. This is nearly 17% of the current cargo of 4700 million tonne kilometres on national waterways. The schemes are an earnest attempt to realise the vast potential that waterways has and to unlock value of the Blue Economy that remained neglected for far too long until 2014.”

Shri Sarbananda Sonowal further added, “The revitalised National Waterways has moved its performance considerably as the total volume of cargo transported by it has increased from 18.07 Million MT in 2013-14 to 132.89 million MT in 2023-24, registering a growth of more than 700%. We have set a target of 200 million MT of cargo movement via waterways by 2030. For 2047, keeping in faith in the growth of inland waterways as a viable alternative for cargo movement, we have set a target of 500 million MT, contributing meaningfully towards realising the vision of Honourable Prime Minister Shri Narendra Modi ji’s Atmanirbhar Bharat.”

The Union Minister of State, MoPSW Shri Shantanu Thakur said, “It is a historic moment for the revival of waterways transport, especially for Bengal. Under the inspiring leadership of Prime Minister Shri Narendra Modi ji, there has been revolutionary change in the waterways transport. With these schemes, the waterways sector, especially in the eastern India, may script a historic turnaround in logistics movement. The economical, effective, efficient and environment friendly mode of transportation promises a new vista in cargo and passenger movement.”

The Minister of State for Transportation (Independent Charge), Govt of UP, Daya Shankar Singh, said, “Inland waterways are unlocking a new era of economic transformation under the visionary leadership of PM Modi. This revolutionary initiative not only provides a sustainable and efficient alternative for cargo and passenger movement but also uplifts the lives of communities along the Ganga, fostering prosperity and connectivity like never before.”

The event was also attended by TK Ramachandran, Secretary, MoPSW; Vijay Kumar, IAS, Chairman, Inland Waterways Authority of India (IWAI), Capt BK Tyagi, Chairman & Managing Director, Shipping Corporation of India (SCI), Rathendra Raman, Chairman,  Syama Prasad Mookerjee Port among others.

India boasts an extensive network of inland waterways comprising rivers, canals, backwaters, and creeks. Of the total navigable length of 20,236 km, 17,980 km consists of rivers, and 2,256 km is made up of canals, both suitable for mechanised craft. However, freight transportation via waterways remains significantly under-utilised compared to countries like the United States, China, and those in the European Union. With focused development, India’s national waterways are poised to become the nation’s lifeline, facilitating efficient transportation.

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DS/AK