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25-Apr-25

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India’s Record Cargo Movement on Inland Waterways

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.

Inland Waterways Authority of India (IWAI)
– Based on recommendations of the National Transport Policy Committee (1980), Inland Waterways Authority of India (IWAI) was established in 1986 under the IWAI Act, 1985.
– Ministry: Union Ministry of Ports, Shipping and Waterways.
– IWAI Functions:
1. Develop and maintain infrastructure on National Waterways (NWs).
2. Conduct feasibility studies.
3. Recommend declaration of new NWs.
4. Advise Central Government and assist State Governments.

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.

Source: AIR