Sonowal unveils ‘Jalvahak’ scheme to boost cargo movement via inland waterways

Union Minister for Ports, Shipping and Waterways Sarbananda Sonowal with Union Minister of State for Ports, Shipping and Waterways Shantanu Thakur flags off multiple cargo vessels, in Kolkata, Sunday, December 15, 2024
| Photo Credit: PTI

The Government on Sunday (December 15, 2024) unveiled a major policy for cargo promotion, ‘Jalvahak’, to boost long haul cargo movement via inland waterways across National Waterways (NW) on rivers Ganga, Brahmaputra and Barak.

The policy was unveiled by Union Minister Ports, Shipping & Waterways Sarbananda Sonowal at an event where he flagged off cargo ships – MV AAI, MV Homi Bhaba along with MV Trishul with two dumb barges Ajay and Dikhu from the GR Jetty, in Kolkata. This marks the beginning of fixed Scheduled Sailing Service of cargo vessels from Haldia for NW 1 (Ganga) and NW 2 (Brahmaputra), a Ministry statement said.

“With its advantage of being an economical, ecologically sound and efficient mode of transportation, we want to boost cargo movement via waterways, to decongest the railways and roadways. Jalvahak scheme incentivises long haul cargo on NW1, NW2 & and NW16, and provides an opportunity for the trade interests to explore movement of cargo via waterways with positive economic value proposition,” Mr. Sonowal said speaking at the event. Further, the regular scheduled freight service, which began from Kolkata, will ensure that the cargo is transported and delivered within a stipulated time frame, he stated.

The ‘Jalvahak’ scheme offers reimbursement of up to 35% of the total operating expenditure incurred while transporting cargo via waterways on NW 1, NW 2 and NW 16 (Barak river) via IBP route, the Ministry said. To encourage the business proposition of vessel operators, the scheme encourages cargo owners to hire vessels owned or operated by Government entities. “The incentive scheme is ideal for major shipping companies, freight forwarders, trade bodies and associations that handle bulk and containerised cargo. By opting for the scheme, it provides them an opportunity to optimise their supply chain network. The scheme is initially valid for three years.”

The fixed day scheduled sailing service will ply vessels between Kolkata – Patna – Varanasi – Patna – Kolkata stretch of NW1 and between Kolkata and Pandu in Guwahati on NW 2 via Indo Bangladesh Protocol Route (IBPR), according to the Ministry. The first vessel MV Trishul with two dumb barges is carrying 1500 tonnes of cement from to Pandu in Guwahati via IBPR while the second vessel MV Aai is carrying 1000 tonnes of Gypsum to Patna and the third vessel – MV Homi Bhaba – is carrying 200 tonnes of coal to Varanasi.

The Minister said that with ongoing efforts, they are expecting a significant turnaround for waterways as these schemes aim at modal shift of 800 million tonne kilometres with an investment of ₹95.4 crores by 2027. “This is nearly 17% of the current cargo of 4700 million tonne kilometres on national waterways. The schemes are an earnest attempt to realise the vast potential that waterways has and to unlock value of the Blue Economy, that remained neglected for far too long until 2014.”

In this regard, Mr. Sonowol said the total volume of cargo transported national waterways has increased from 18.07 Million MT in 2013-14 to 132.89 million MT in 2023-24, registering a growth of more than 700%. “We have set a target of 200 million MT of cargo movement via waterways by 2030. For 2047, keeping in faith in the growth of inland waterways as a viable alternative for cargo movement, we have set a target of 500 million MT…,” he added.

India has an extensive network of inland waterways comprising rivers, canals, backwaters, and creeks. Of the total navigable length of 20,236 km, 17,980 km consists of rivers, and 2,256 km is made up of canals, both suitable for mechanised craft. However, freight transportation via waterways remains significantly under-utilised compared to countries like the US, China, and those in the European Union.

The cargo promotion scheme provides direct incentive to the cargo owners to transport their goods via inland waterways for a distance of more than 300 kms and is also aimed reducing logistics costs and decongest road and railways.

The Fixed Day Scheduled Sailing Service is operated by Inland & Coastal Shipping Limited. On the NW 1 stretch between Kolkata and Varanasi via Patna, the transit time is fixed at 7 days for Kolkata to Patna stretch, 5 days for Patna to Varanasi and 14 days for Kolkata to Varanasi stretch. Similarly, for the cargo transit on NW2 via IBPR, the Kolkata to Pandu stretch is fixed at 18 days while Pandu to Kolkata is fixed at 15 days. Initially, this scheme will be valid for a period of 3 years.