"Subsidies for Inland Waterways Goods Movement Under Development"

The government is planning to offer financial incentives to boost the use of inland waterways for cargo transportation, aiming to enhance the utilization of India’s rivers, canals, and backwaters. Officials have revealed that a new scheme will provide discounts of up to 35% on invoice values for goods transported via the Ganga, Brahmaputra, and Barak rivers.

Under the proposed plan, a subsidiary of the state-run Shipping Corporation of India, Inland & Coastal Shipping Ltd (ICSL), will run scheduled services on these waterways. The government will reimburse ICSL for the revenue losses incurred due to the discounts. This scheme is designed to make waterway transport more competitive with road transport and to address feedback from stakeholders who have recently used National Waterways 1, 2, and 16.

National Waterway 1 (NW1), which spans 1,620 kilometers across Uttar Pradesh, Bihar, Jharkhand, and West Bengal, and National Waterway 2 (NW2), covering 891 kilometers on the Brahmaputra River, will be the focus of this initiative. By promoting cargo movement on these routes, the government aims to alleviate congestion on rail and road networks and offer a cleaner and more cost-effective transport option.

The incentives will apply after goods are transported and based on the invoice value raised by ICSL. Additionally, the government may provide direct incentives to other companies operating shipping services on these inland waterway routes.

Last October, the Centre announced a ₹15,200 crore investment plan to increase cargo movement on inland waterways, aiming for a 400% rise in cargo volume to 500 million tonnes per annum by 2047. A separate ₹12,000 crore project on the Brahmani River (NW5) in Odisha is also being developed to facilitate goods transport from industrial clusters to ports.

India's network of 111 notified national waterways spans over 22,000 kilometers across 24 states, highlighting the country's commitment to expanding and modernizing its inland waterway infrastructure.

ET