India’s Record Cargo Movement on Inland Waterways

General Studies Paper-3

Context: India has achieved a record of over 145 million tonnes of cargo movement on inland waterways in 2024-25.

About

• The number of National Waterways increased from 5 to 111, with the operational length growing from 2,716 km (2014–15) to 4,894 km (2023–24).
• Massive infrastructure development includes Multi-Modal Terminals (MMTs), Inter-Modal Terminals (IMTs), community jetties, floating terminals, and green tech like Hybrid Electric and Hydrogen Vessels.
• Future Prospects: India aims to increase IWT modal share from 2% to 5%, and raise traffic to 200+ MMT by 2030 and 500+ MMT by 2047 under Maritime Amrit Kaal Vision.

Inland Waterways

• Inland waterways refer to navigable rivers, canals, backwaters, and creeks used for transportation of goods and passengers within a country.
• India has ~14,500 km of navigable waterways, but their usage is limited. 111 waterways have been declared National Waterways (NWs) under the National Waterways Act, 2016.
• Importance of Inland Waterways
  • Economic Benefits: Lower transportation costs compared to road and rail.
  • Fuel Efficiency: Uses 30% less fuel than road transport and 50% less than rail.
  • Environmental Sustainability: Reduces carbon emissions and congestion on roads.
  • Connectivity: Supports hinterland trade and rural economies.
  • Tourism & Passenger Transport: Plays a role in ferry services and river cruises.

Criteria for Declaring a National Waterway

• The Inland Waterways Authority of India (IWAI) declares the National Waterway.
• National Transport Policy Committee (1980) recommended the following criteria for National Waterway:
• Navigable by mechanically propelled vessels of reasonable size.
• Channel width of ~45 m and depth of ~1.5 m.
• Continuous stretch of at least 50 km.
• Should serve multiple states, or connect major ports/hinterlands, or be strategically important, or serve underserved areas.

Challenges in Inland Waterway Development

• Seasonal water level variations affect navigation.
• Lack of infrastructure (terminals, dredging, and navigation aids).
• Slow adoption by industries due to underdeveloped routes.
• Competition from road and rail transport.

Policy Measures to Boost Inland Waterways

• Jalvahak – Cargo Promotion Scheme: It was launched in 2024 and has two key components:
• Financial Incentive: Cargo owners get a 35% reimbursement on actual operating costs for shifting cargo from road/rail to IWT, encouraging use of waterways.
• Scheduled Services: Regular cargo services have been introduced to boost reliability and predictability.
• Extension of Tonnage Tax to Inland Vessels: It was announced in 2025 during the budget, the tonnage tax regime has been extended to inland vessels registered under the Indian Vessels Act, 2021.
  • Benefit: Provides a stable and predictable tax regime based on vessel tonnage rather than profits, thereby lowering the tax burden and encouraging broader adoption of inland shipping.
• Regulatory Framework for Private Investment: The National Waterways (Construction of Jetties/Terminals) Regulations, 2025 have been notified, enabling private investment in inland waterways infrastructure.
• Port Integration: To ensure seamless multimodal logistics, the Multi-Modal Terminals at Varanasi, Sahibganj, and Haldia, as well as the Intermodal Terminal at Kalughat, are being transferred to Shyama Prasad Mookerjee Port, Kolkata for operation and management.
  • This integration is expected to streamline cargo movement between ports and inland waterways.
• Digitisation and Centralised Database: A centralised portal is being developed for the registration of inland vessels and crew, similar to the ‘Vahan’ and ‘Sarathi’ systems used for road transport. This initiative will:
  • Simplify registration processes.
  • Provide real-time data on vessel and crew availability.
  • Enhance transparency and planning in the sector.
• Cargo Aggregation Infrastructure: To resolve issues related to sparse industrial presence along waterways, cargo aggregation hubs are under development:
  • Freight Village at Varanasi.
  • Integrated Cluster-cum-Logistics Park at Sahibganj.
• Engagement with Public Sector Undertakings (PSUs): More than 140 PSUs have been engaged to explore shifting a portion of their cargo to IWT.

Way Ahead

• The Indian government is investing heavily in inland waterways through projects like Jal Marg Vikas (JMVP).
• Public-private partnerships (PPPs) are being encouraged.
• Integration of IWT with multimodal logistics hubs for seamless transport is being carried out.