The Ministry of Ports, Shipping, and Waterways has notified a ₹100 crore scheme to incentivise the Inland Water Transport (IWT) sector. This initiative aims to support the sector’s growth, focusing on shifting cargo from road and rail to more eco-friendly waterways.
The IWT sector, which remains in its early stages of development, faces challenges such as higher total logistics costs due to the multimodal nature of transport. While the cost of transporting goods on waterways is lower than other modes, the integration with road and rail systems can make it more expensive overall. The new scheme seeks to address these challenges by offering financial incentives, including a 35% subsidy to promote greater use of inland waterways for cargo movement. The scheme covers key National Waterways (NW)-1, NW-2, and NW-16, providing support for starting scheduled services for cargo transportation. By incentivising operators, the government aims to reduce the reliance on road and rail, easing congestion and lowering transportation costs in the long run.
The Ministry emphasized that the IWT sector needs both infrastructure development and support to encourage a modal shift in cargo movement. The ₹100 crore scheme represents a concerted effort to enhance the use of India’s river, canal, and backwater networks, ultimately improving the overall logistics landscape. This initiative aligns with India’s broader goal of sustainable and cost-effective transportation. It is expected to not only reduce the environmental footprint of cargo movement but also stimulate economic growth in regions that are connected through the inland waterways network. By leveraging the full potential of this underutilized sector, the government aims to create a more efficient and greener logistics system for the country.
