New Delhi
India’s inland waterways transport (IWT) sector is set for significant growth, with the government planning to expand public-private partnerships (PPPs) to enhance development, according to a recent report.
The Crisil Market Intelligence and Analytics report highlights the government’s push to attract private investment through financial incentives, including up to 35% discounts on freight moved via major national waterways (NWs). A subsidy scheme is also being developed for NW-1, NW-2, and NW-16, which cover states like Uttar Pradesh, Bihar, Jharkhand, West Bengal, and Assam, to encourage the use of waterways for cargo transport.
Since 2016, when the government began focusing on IWT, the number of operational waterways has risen from three in 2014 to 26 in 2024, thanks to increased budget allocations and projects like the Jal Marg Vikas Project. This initiative, launched in 2018 with a budget of Rs 5,369.18 crore, aims to upgrade the 1,390 km National Waterway 1 along the Ganga-Bhagirathi-Hooghly river system.
Transporting freight via waterways is more cost-effective, at about Rs 1.06 per km for 1 tonne, compared to Rs 1.36 per km by rail and Rs 2.50 per km by road. Cargo volumes have surged from 18.1 million tonnes in 2014 to 132.9 million tonnes in 2024, with a goal to reach 200 million tonnes by 2030.
Digital tools like the IWAI Vessel Tracker and PANI Portal are improving efficiency, while water transport remains an eco-friendly choice for moving bulk goods like coal, sand, and minerals.
