Syllabus:

GS3: Infrastructure: Energy, Ports, Roads, Airports, Railways etc.

Context: 

In a significant achievement for India’s inland water Transport (IWT) sector, the Inland Waterways Authority of India (IWAI) reported a record-breaking cargo movement of 145.5 million tonnes in the fiscal year 2024-25.

More on the News

• This milestone highlights the success of sustained investments and policy initiatives focused on strengthening the country's inland waterways infrastructure.
• The number of operational national waterways has also increased from 24 to 29 in the fiscal year 2024–25. 

Exponential Growth in Cargo Traffic 

• Cargo traffic on National Waterways (NWs) increased from 18.10 (million metric tonnes) MMT to 145.5 MMT between FY-14 and FY-25, recording a Compound Annual Growth Rate (CAGR) of 20.86%.
• In FY-25, traffic movement registered a year-on-year growth of 9.34% from FY-24.
  Five commodities: Coal, Iron Ore, Iron Ore Fines, sand, and Fly Ash constituted over 68% of the total cargo moved on NWs during the year.
  Passenger movement has also reached 1.61 crore in 2023–24.

Expansion of National Waterways 

• The IWAI, under the Ministry of Ports, Shipping and Waterways, has expanded the number of NWs from 5 to 111 under the National Waterways Act, 2016.
• The operational length of NWs has increased from 2,716 km in 2014–15 to 4,894 km in 2023–24.
• Major works include fairway maintenance, community jetties, floating terminals, Multi-Modal Terminals (MMTs), Inter-Modal Terminals (IMTs), and navigational locks.

Digital Initiatives for Ease of Doing Business

• IWAI has launched several digital tools to streamline operations and improve efficiency:
• Least Available Depth Information System (LADIS)River Information System (RIS)River Information System (RIS) 
• River Information System (RIS)
• Portal for Navigational Information (PANI)
• Management Information and Reporting Solution (MIRS)
• Green initiatives such as Hybrid Electric Catamarans and Hydrogen Vessels are being introduced to reduce pollution and promote river tourism.
• The Government of India aims to Increase the modal share of freight transported via IWT from 2% to 5% and traffic volume to:
• 200+ MMT by 2030 (Maritime India Vision 2030)
• 500+ MMT by 2047 (Maritime Amrit Kaal Vision 2047)

Key Policy Measures to Boost Inland Waterways

• Jalvahak – Cargo Promotion Scheme: Launched in December 2024 with a budget of Rs. 95.42 crores. It has two key components:
• Financial Incentive: 35% reimbursement on actual operating costs for cargo shifted from road/rail to IWT.
• Scheduled Services: Regular cargo services have been introduced to boost reliability and predictability.
• Extension of Tonnage Tax to Inland Vessels: It was announced in union budget 2025, under it the tonnage tax regime has been extended to inland vessels registered under the Indian Vessels Act, 2021.
• Under this system, the tax liability of a shipping company is determined based on the tonnage of its qualifying ships, rather than the actual income earned.
• Regulatory Framework for Private Investment: The National Waterways (Construction of Jetties/Terminals) Regulations, 2025 have been notified to provide a legal and operational framework for private sector participation in jetty/terminal construction and management.
• Digitisation and Centralised Database: A centralised portal is being developed for the registration of inland vessels and crew, similar to the 'Vahan' and 'Sarathi' systems used for road transport. This initiative will:
• Simplify registration processes
• Provide real-time data on vessel and crew availability
• Enhance transparency and planning in the sector
• Cargo Aggregation Infrastructure: To resolve issues related to sparse industrial presence along waterways, cargo aggregation hubs are under development:
• Freight Village at Varanasi
• Integrated Cluster-cum-Logistics Park at Sahibganj