India has an extensive network of inland waterways in the form of rivers, canals, backwaters and creeks. Freight transportation by waterways is highly underutilized in the country as compared to developed countries. India's hinterland connectivity is mainly based on road and rail with domestic waterways— both coastal shipping and inland waterways—playing a limited role. Waterways are found to be cost effective as well as an environmentally friendly means of transporting freight. In India, Inland Water Transport (IWT) has the potential to supplement the over-burdened railways and congested roadways. In addition to cargo movement, IWT sector also provide a convenient function in related activities such as carriage of vehicles {on Roll-on-Roll-off (Ro-Ro) mode of cross ferry} and tourism.

India has an extensive network of inland waterways in the form of rivers, canals, backwaters and creeks. Freight transportation by waterways is highly underutilized in the country as compared to developed countries. India's hinterland connectivity is mainly based on road and rail with domestic waterways— both coastal shipping and inland waterways—playing a limited role. Waterways are found to be cost effective as well as an environmentally friendly means of transporting freight. In India, Inland Water Transport (IWT) has the potential to supplement the over-burdened railways and congested roadways. In addition to cargo movement, IWT sector also provide a convenient function in related activities such as carriage of vehicles {on Roll-on-Roll-off (Ro-Ro) mode of cross ferry} and tourism.

Government Initiatives in promoting waterways

Growth in cargo through inland waterways has generally been sluggish in post-independent India, because of lack of policy incentives, non-availability of infrastructure, viz. river jetties, channel depth, number of vessels, right of way etc. With renewed emphasis on waterways transportation, this is expected to improve flow of goods through waterways.

Over the years, government has taken multiple initiatives in promoting waterways transportation and speeding infrastructure

These include

1. Jal Marg Vikas Project (JMVP) for NW-1.
2. Arth Ganga and Arth Brahmaputra for holistic and sustainable development leveraging NW-1 and NW-2 for freight and passenger movement.
3. Inland Vessels Bill.
4. Land Use Policy for Inland Waterways (IWs).
5. Dredging Policy for IWs.
6. Promoting private participation in terminal operations and maintenance.

The waterways are also proposed to be linked to the eastern and western Dedicated Freight Corridors (DFCs), as well as the Sagarmala Project, which aims to promote port-led direct and indirect development. The linkages are being planned in a manner such that commodities and cargo can be swapped/shifted from and to the waterways, the DFCs and road transport. The inland waterway in its full scope is conceived as part of an ambition to link several big infrastructure projects.

Increasing share of Commodities through Waterways:

Multiple projects transporting bulk material via inland waterways has already been taken up by few companies to reduce their logistics cost and are found to be proved as cost-effective. Some of them are as follows:

1. Cement - From port of Farakka to that of Nabadweep, Bhagalpur and Patna
2. Hot rolled Coils - From port of port of Kolkata to that of Tripura via Ashuganj
3. Food Grains - From port of Kolkata to that of Assam
4. Iron Ore - It is being transported in the regions of Goa

Other than this certain successful project operating on Inland Waters are involved in the shipment of Coal, Fertilizers, and Fly Ash etc. These projects stand as a testimony to the merit being provided by the Inland Waterways. Other projects can be taken up on same lines.

Bulk cargo transport through waterways of coal, fly-ash, and iron ore are economical, environment friendly, and less polluting than the Road and Rail modes of transport.

Currently, around 80% of food grain stocks are transported through railways, 19% by road and only a small quantity is being transported by waterways. By collaborating with the Inland Waterways Authority of India (IWAI), FCI is pro-actively trying to diversify/optimize modal mix and supplement rail/road transportation mode with coastal/riverine mode.

Blue Economy – Vision 2047: Initiatives to enhance modal share

Enhance domestic connectivity

1. Operationalization of various projects on 23 National Waterways by 2025
2. Implementation of DIPP Policy PM GatiShakti

Enhance Regional connectivity

1. Improve India-Bangladesh Inland Waterway Transport (IWT) connectivity by 2024
2. Upgrade port terminals to increase capacity and improve last mile connectivity by 2025
3. Develop custom bonded terminals with fairway development by 2025
4. Establish communication infrastructure bringing together all stakeholders by 2026
5. Increase vessel fleet in IWT sector by 2024 (under model 1)
6. Introduce low draft design vessels by 2024 (under model 1)
7. Simplify custom process and align cross-country custom rules for a seamless transportation of cargo by 2024
8. Combine various transit and trade rules currently in existence into one regional agreement by 2035<
9. Strengthen the existing institutional structure between India & Bangladesh (PIWTT, CVA and ACMP) for water management and navigation by 2022
10. Establish regional governance structure to include Nepal, Bhutan & Myanmar forming a four-tier structure by 2030