Jalvahak scheme: Boosting inland waterway trade

The Union government launched the Jalvahak scheme to promote cargo transport via inland waterways, offering up to 35% cost reimbursement for distances over 300 km. The initiative aims to decongest road and rail networks, optimize logistics, and shift 800 million tonne-kilometres of cargo by 2027.

The Union government launched the ‘Jalvahak’ scheme on Sunday to boost cargo transportation through inland waterways, promoting sustainable and cost-effective logistics across National Waterways 1 (Ganga), 2 (Brahmaputra), and 16 (Barak River). Union Minister of Ports, Shipping & Waterways Sarbananda Sonowal flagged off three cargo vessels and inaugurated a fixed-schedule service to demonstrate the efficiency of waterway transport.

The scheme aims to unlock inland waterways’ trade potential, lower logistics costs, and ease road and rail congestion. Cargo owners transporting goods over 300 km through waterways will receive up to 35% reimbursement on operating costs. The scheme, valid for three years, targets improved supply chains for major shipping companies, freight forwarders, and trade bodies. Jointly implemented by the Inland Waterways Authority of India (IWAI) and Inland & Coastal Shipping Ltd (ICSL), a Shipping Corporation of India subsidiary, the initiative expects to shift 800 million tonne-kilometres of cargo, backed by an investment of ₹95.4 crore by 2027.

The fixed-schedule sailing service will operate on Kolkata-Patna-Varanasi and Kolkata-Pandu (Guwahati) routes, highlighting the waterways’ readiness for eco-friendly cargo transport. Sonowal stated, “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 flagged off three vessels: MV Trishul (1,500 tonnes of cement) to Guwahati via the Indo-Bangladesh Protocol Route, MV Aai (1,000 tonnes of gypsum) to Patna, and MV Homi Bhaba (200 tonnes of coal) to Varanasi. Cargo volumes on national waterways surged from 18.07 million tonnes (2013-14) to 132.89 million tonnes (2023-24), with targets of 200 million tonnes by 2030 and 500 million tonnes by 2047.

India’s 20,236 km inland waterway network remains under-utilised compared to global counterparts like the US and China. UltraTech, in 2023, transported 57,000 metric tonnes of phosphogypsum via waterways, showcasing their sustainable supply chain efforts.