Centre Announces ₹100 Crore Scheme to Boost Inland Water Transport.

India's Ministry of Shipping has announced a ₹100 crore scheme aimed at promoting inland waterways transport (IWT) and incentivizing the establishment of Scheduled Services for Cargo Movement on National Waterways (NW)-1, NW-2, and NW-16.

The Ministry of Ports, Shipping, and Waterways stated that the IWT sector is still in its early stages and needs support to encourage the shift of cargo from other transport modes, alongside the development of the necessary infrastructure.

According to reports from August, the government is looking to offer financial incentives for goods movement on inland waterways, part of a broader strategy to enhance the use of the country’s extensive network of rivers, canals, and backwaters for cargo transport.

Although transporting goods on waterways is cheaper than other transport modes, the multi-modal nature of logistics on inland waterways results in higher overall logistics costs. To address this, the new scheme offers a 35% incentive to encourage greater utilization of the inland waterways transport sector.

ET