The Shipping Ministry of India has announced a Rs 1 billion scheme aimed at boosting inland waterways transport (IWT). The initiative includes incentives for launching Scheduled Services for Cargo Movement on National Waterways (NW) 1, 2, and 16.

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

The government's consideration of financial assistance for goods movement via inland waterways, as part of a strategy to leverage the country’s river, canal, and backwater networks for cargo transport.

Although waterway transport is inherently less expensive compared to other modes, the multimodal logistics involved often increase the overall cost.

To address this, the scheme offers a 35 per cent incentive to promote the use of inland waterways for cargo transport. Official estimates project that the initiative could redirect 800 million tonne-kilometres of cargo to IWT, supplementing the existing 4700 million tonne-kilometres already transported via waterways. The scheme will remain in effect for three years, with potential for scaling up or modification based on its outcomes.

The ministry also mentioned that the scheme is currently limited to NW-1, NW-2, and NW-16, including routes under the Indo-Bangladesh protocol, given the high potential for traffic growth in these areas. However, the scope of the scheme may be expanded to other waterways based on its success.