A scheme to incentivise cargo movement via inland waterways to promote sustainable and cost-effective transportation was launched on Sunday with the aim to reach 200 million tonne cargo movement in this sector by 2030.

The “Jalvahak’ scheme will initially focus on three national waterways, 1 (Ganges), 2 (Brahmaputra), and 16 (Barak river). Sarbananda Sonowal, the union minister of ports, shipping & waterways, flagged off three cargo vessels from Calcutta, launching the scheme and inaugurating the fixed scheduled service of vessels.

Under the scheme, cargo owners transporting goods over distances exceeding 300km via waterways will receive up to 35 per cent reimbursement on operating costs. The scheme will remain valid for three years and is designed to optimise supply chains for major shipping companies, freight forwarders and trade bodies.

The scheme is jointly implemented by the Inland Waterways Authority of India (IWAI) and Inland & Coastal Shipping Ltd (ICSL), a subsidiary of the Shipping Corporation of India.

The government is hoping that the cargo promotion scheme will facilitate a modal shift of 800 million tonne-kilometres with an estimated investment of ₹95.4 crore by 2027.

“The Jalvahak scheme incentivises long-haul cargo transport and ensures timely delivery through regular freight services. This initiative provides a positive economic value proposition to trade while advancing Prime Minister Narendra Modi’s vision of transformation via transportation,” Sonowal said while flagging off the vessels.

The fixed-schedule sailing service will ply vessels between Calcutta-Patna-Varanasi and Calcutta-Pandu (Guwahati) routes, demonstrating the readiness of waterways for efficient and eco-friendly cargo transportation.

While one of the vessels is taking 1,500 tonnes of cement to Guwahati via the Indo-Bangladesh Protocol Route, another with 1,000 tonnes of gypsum is going to Patna and while the other is taking 200 tonnes of coal to Varanasi.

The mineral gypsum being shipped from Haldia port in Bengal to Gaighat terminal in Patna is for Patliputra cement works, UltraTech’s cement grinding unit located in Patna, the cement maker said.

Highlighting the sector’s growth, Sonowal said cargo volumes on national waterways have increased from 18.07 million tonnes in 2013-14 to 132.89 million tonnes in 2023-24, registering over 700 per cent growth. He added that the government aims to achieve 200 million tonnes by 2030 and 500 million tonnes by 2047.