The Indian ministry of ports, shipping, and waterways has also established a ₹100 crore scheme for the development of inland waterways transport. The same is being done in an effort to increase the usage of India’s rivers, canals, and backwaters to carry cargo by the government, in the hope that logistics could become much more effective and eco-friendly. The share of inland waterways should also be increased. Again, here, financial incentives would reduce the costs, but this would also possibly reduce the congestions on roads as well as on the railways.
What is the ₹100 Crore Scheme for Inland Waterways?
The Ministry of Ports, Shipping, and Waterways has officially notified the scheme for the provision of finance to such industries that have cargo transport through national waterways in India, which includes scheduled cargo services over National Waterway-1 (NW-1), National Waterway-2 (NW-2), and National Waterway-16 (NW-16).
It has long been known that inland water transport is cheaper and more environment-friendly than road and rail. India’s IWT sector, however, still is in its nascent stage and great need of infrastructure as well as operations support exists to shift the traffic to this mode for serious stakeholders. The ₹100 crore schemes are strategic efforts in developing this sector that will do it by addressing the key challenges and necessary incentives.
Important Characteristics of Scheme
These are the important features of the ₹ 100 crore scheme:
- Scheduled Cargo Services:The scheme is capable of opening scheduled cargo services on the crucial national waterways. They include NW-1, NW-2 and NW-16. It is because such waters have served as a peripheral route by which a business could take products from one region to the other effectively.
- Financial Assistance for Infrastructure: The financial aid is available under the scheme for building such basic infrastructure required for making the inland waterways attractive for businesses. That includes terminals, loading and unloading facilities, etc.
- Promoting Freight on Water: Diverting cargo from road and railway to water is the gist of the programme. Moving bulk commodities through inland waterways happens to be an eco-friendly as well as an inexpensive affair. Additionally, in this regard, the government proposes to grant an incentive of 35 percent over the eligible cost to the companies shifting the freight movement to inland waterways.
Why This Plan Matters for India’s Logistics Industry
Inland water transport of India has immense potential to develop its logistic infrastructure. Some of the few advantages of shipping through water are:
- Lower Transport Costs: The cost of transporting by waterways is relatively cheaper compared to other modes of transport, such as road or rail, especially for bulkier or heavier commodities. However, given the need for multi-modal transport, logistics costs are still on the higher side. The new ₹100 crore scheme will aim to bring in cost reductions due to inland waterways usage.
- Environmental Sustainability: In terms of its damage quotient, waterways are lesser in impact as compared to the transport medium on road and rails, owing to lesser emissions per ton of cargo. This factor coupled with focus from the government toward green growth would ensure this transition toward making waterways an exclusive transportation channel, reducing carbon footprints.
- Reducing Road and Rail Congestion: Heavy congestion is inevitable in the Inland water transport and railways sectors of India; this, after all, reflects inconvenience and increases cost. Encouraging and promoting inland waterways would simply shift the burden, making room for a far more balanced and productive logistics system to emerge.
Overcoming Challenges in Inland Waterways Sectors
Various challenges have actually hindered their growth. However, some are as follows :
- Infrastructure Deficiencies: Provision of adequate infrastructural facilities regarding proper terminals and cargo handling and transporting infrastructures is yet to be met up to the desired mark. Therefore, this scheme proposed infrastructural development on finance.
- Regulatory Barriers: The costs of passing through the regulations would be very high, or it may be cumbersome; the scheme would look at how to reduce all these barriers in operation and make the inland waterways easier to use by businesses.
- Lack of Awareness: Most businesses do not know of the advantages presented by cargo transport on inland waterways. The programme also aims at educating people about the potential in inland waterways and how to do it effectively to increase logistical efficiency.
Conclusion: A Leap Towards a Future That Is Not Harmful
The inland waterways transport scheme India is proposing amounts to a ₹100 crore, and it is termed to be an initiative that will remake the country’s logistics landscape. With the financial incentives and infrastructure support, the government is making it a more feasible option for transporting cargo through inland waterways.
This scheme would conserve transportation cost, and it will achieve the other more long-term objectives for India-sustainability and environment-friendly practice. Adequate infrastructure and support could turn the inland waterway into the back bone of logistics for India. This, too, will conserve the cost to the business concerned and help India to grow greenly.
This ₹100-crore scheme marks a gigantic leap forward toward future growth of the Indian inland waterways transport and would gain mileage further if it encourages higher infrastructure development in general with higher water-based transport, said analysts in support of a bullish scenario of a good growing cycle for IWT sector ahead, with gains seen in all facets-from commerce to ecology.
Refer :
Economic Times, Link to article
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