The Indian Ministry of Ports, Shipping, and Waterways has launched a ₹100 crore scheme aimed at boosting the country’s inland waterways transport (IWT) sector. This initiative seeks to encourage the use of India’s rivers, canals, and backwaters for cargo movement, ultimately making logistics more efficient and environmentally sustainable. By offering financial incentives, the government intends to increase the use of inland waterways, which can significantly lower logistics costs and reduce congestion on roads and railways.
What Is the ₹100 Crore Scheme for Inland Waterways?
The scheme, now officially notified by the Ministry of Ports, Shipping, and Waterways, is designed to provide financial support to businesses that engage in cargo transport via India’s national waterways. This includes promoting scheduled cargo services on National Waterway-1 (NW-1), National Waterway-2 (NW-2), and National Waterway-16 (NW-16).
Inland waterways transport has long been viewed as a cost-effective and eco-friendly alternative to road and rail. However, India’s IWT sector is still in its early stages, and substantial infrastructure and operational support are needed to make it a viable option for businesses. The ₹100 crore scheme is a strategic effort to develop this sector by addressing key challenges and providing necessary incentives.
Key Features of the Scheme
Here are the primary features of the ₹100 crore scheme:
- Scheduled Cargo Services: The scheme encourages the launch of scheduled cargo services on crucial national waterways like NW-1, NW-2, and NW-16. These waterways are vital for cargo transportation, offering a direct route for businesses to move goods efficiently across regions.
- Financial Assistance for Infrastructure: To make inland waterways more attractive for businesses, the scheme provides financial assistance to build essential infrastructure. This includes the construction of terminals, loading/unloading facilities, and other logistics-related infrastructure.
- Incentives to Shift Cargo to Waterways: A major goal of the scheme is to shift cargo transport from road and rail to waterways. Inland waterways offer a greener and more cost-effective way to move bulk goods. To encourage this transition, the government is offering a 35% incentive on eligible costs for businesses that choose to use inland waterways for their cargo transport.
Why This Scheme Is Crucial for India’s Logistics Sector
The inland waterways transport sector holds immense potential for improving India’s logistics network. The benefits of utilizing waterways for cargo movement include:
- Lower Transport Costs: Transporting goods by waterways is generally more affordable than other modes like road or rail, particularly for bulk or heavy goods. However, due to the need for multi-modal transportation, logistics costs can still be higher overall. The ₹100 crore scheme aims to reduce these costs by encouraging the use of inland waterways.
- Environmental Sustainability: Waterways transport is more environmentally friendly than road or rail, producing fewer emissions per ton of cargo. With the government’s focus on green growth, shifting cargo to waterways can significantly help reduce India’s carbon footprint.
- Reducing Road and Rail Congestion: India’s roadways and railways often face heavy congestion, leading to delays and higher costs. By encouraging the use of inland waterways, the government hopes to ease this pressure and create a more balanced, efficient logistics system.
Addressing Challenges in the Inland Waterways Sector
While inland waterways offer numerous advantages, there are several challenges hindering their growth. Some of the key hurdles include:
- Infrastructure Deficiencies: The development of sufficient infrastructure, such as terminals, cargo handling facilities, and efficient transportation systems, is still in its infancy. This scheme aims to address these gaps by offering financial support for infrastructure development.
- Regulatory Barriers: Navigating the regulatory frameworks for multi-modal transportation can be complex and costly. By providing financial incentives, the scheme seeks to reduce these operational challenges and make inland waterways more accessible for businesses.
- Lack of Awareness: Many businesses may not be aware of the benefits of using inland waterways for cargo transport. The scheme also aims to raise awareness about the potential of inland waterways and how they can be leveraged to improve logistics efficiency.
Conclusion: A Step Toward a Sustainable Future
India’s ₹100 crore scheme for inland waterways transport is an important initiative that will likely reshape the country’s logistics landscape. By offering financial incentives and infrastructure support, the government is making inland waterways a more viable option for cargo transport.
This scheme not only promises to reduce transportation costs but also aligns with India’s long-term goals of promoting sustainable and environmentally-friendly practices. With the right infrastructure and support, inland waterways have the potential to become a key pillar of India’s logistics network, helping businesses save costs while contributing to the country’s green growth.
In conclusion, the ₹100 crore scheme marks a significant investment in the future of inland waterways transport in India. As the government continues to push for infrastructure development and greater adoption of water-based transport, the IWT sector is poised for significant growth, bringing benefits to businesses and the environment alike.
Refer :
Economic Times, Link to article
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