INLAND WATERWAYS IN INDIA: POTENTIAL, CHALLENGES, WAY FORWARD

Why In News?

The Union government is boosting National Waterways through the PM Gati Shakti initiative to create a cost-effective, eco-friendly logistics network and enhance regional connectivity.

What are Inland Waterways?

Inland Waterways are navigable water bodies located within a country’s landmass, such as rivers, canals, backwaters, creeks, and lakes, used for the transportation of goods and passengers. 

What is the current status of Inland Waterways in India?

India possesses a vast network of inland waterways, but they remain underutilized compared to road and rail. 

• Total Navigable Length: India has approximately 14,500 km of navigable waterways, of which about 5,200 km of rivers and 4,000 km of canals can be used by mechanized vessels.
• National Waterways (NWs): Under the National Waterways Act, 2016, the government has declared 111 inland marks as National Waterways to promote fuel-efficient and environment-friendly transport.
• Modal Share: Currently, inland water transport (IWT) accounts for only about 2% of India's total modal freight share, lower than in countries like China or the European Union.
• Key Operational Waterways:
• NW-1 (Ganga-Bhagirathi-Hooghly): Running 1,620 km from Haldia to Prayagraj.
• NW-2 (Brahmaputra): Vital for Northeast connectivity, running 891 km from Dhubri to Sadiya.
• Institutional Framework: The Inland Waterways Authority of India (IWAI), established in 1986, is the statutory body responsible for the development and regulation of these waterways. 

Key Initiatives

• Jal Marg Vikas Project (JMVP): Implemented with World Bank assistance to augment the capacity of NW-1 for commercial navigation of large vessels.
• Arth Ganga Concept: Launched to transform the Ganga into an economic corridor, focusing on sustainable development and livelihoods for local communities along the river.

Why has India historically underutilised its inland waterways?

Seasonal River Flow: Rain-fed Indian rivers experience dry-season drops, hindering year-round navigation compared to European systems.

Siltation and Draft Issues: High sediment in the Ganga and Brahmaputra reduces the Least Available Depth (LAD) necessary for commercial vessels.

Rail and Road Dominance: Historical investment bias toward rail and road networks has restricted waterways to a 2% modal share.

Infrastructure Deficit: A shortage of multimodal terminals, night navigation (DGPS), and mechanized port systems persists.

Regulatory Complexities: Inter-state legal friction over water rights and maintenance has obstructed unified waterway development.

What are the advantages of inland waterways?

Cost-Effectiveness: Inland water transport is significantly cheaper than other modes. A World Bank study estimates it is roughly 30% cheaper than rail and 60% cheaper than road transport.

Fuel Efficiency: It is the most energy-efficient mode. One liter of fuel can move 24 ton-km by road, 85 ton-km by rail, but 105 ton-km by inland waterway. (Source: RITES Report)

Environmental Sustainability: It has the lowest carbon footprint, emitting less CO2 per ton-km compared to trucks and trains, aligning with India's climate goals.

Minimal Land Acquisition: Unlike highways or railway lines which require massive land acquisition and displacement, waterways utilize existing natural channels, avoiding litigation and social conflict.

Connectivity for the Northeast: It provides an alternative route to the "Chicken's Neck" corridor, connecting the Seven Sisters via the Brahmaputra (NW-2) and the Indo-Bangladesh Protocol Route.

What major initiatives has the government taken?

Jalvahak Scheme: It offers a 35% reimbursement on operating costs to cargo owners who shift from road/rail to waterways (specifically NW-1, NW-2, and NW-16). It also funds scheduled cargo services to build market confidence.

Harit Nauka Guidelines: A push for "Green Vessels." It mandates that 50% of all inland passenger fleets must run on green fuels (like hydrogen or electric) by 2033, and 100% by 2045. (Source: MoPSW)

Budget 2026-27 Push: The Union Budget announced the operationalization of 20 new National Waterways over the next 5 years and introduced a "Coastal Cargo Promotion Scheme" to integrate inland and coastal shipping.

Infrastructure & Connectivity

• Freight Villages: India’s first "Freight Village" is being developed in Varanasi to aggregate cargo, solving the "return cargo" issue. A similar logistics park is coming up in Sahibganj.
• Digital Governance: Launch of the 'Sagarmanthan' dashboard for real-time project monitoring and the 'PANI' (Portal for Asset and Navigation Information) app to help captains navigate river depths.
• Tonnage Tax: Extended to inland vessels in 2025, reducing the tax burden on vessel operators to attract private investment.

What challenges still persist?

Return Cargo Dilemma: The lack of return cargo on routes like NW-1 (Ganga) doubles operational costs, as vessels often return empty after upstream deliveries.

Depth (LAD) Constraints: Maintaining a 3-meter Least Available Depth year-round is difficult, particularly in the Varanasi-Prayagraj stretch during summer.

Last-Mile Connectivity: Inadequate rail sidings and high transport costs from river ports to factories often negate the financial benefits of water transport.

Ecological Impact: Dredging conflicts with environmental norms by threatening the habitat of the Gangetic Dolphin.

How can Inland waterways transform India’s logistics sector? 

Inland waterways offer a pathway to reduce logistics costs from the current 13-14% of GDP to approximately 8-9%.

Decongestion of Trunk Routes: By shifting bulk cargo (coal, cement, steel, fertilizers) to rivers, waterways can reduce pressure on the Golden Quadrilateral highways and the Dedicated Freight Corridors.

Cost Competitive Exports: Lowering transport costs for the hinterland (e.g., UP, Bihar, Jharkhand) via NW-1 to the Haldia/Kolkata ports makes Indian exports more competitive in global markets.

Regional Economic Hubs (Arth Ganga): Transforming riverbanks into economic corridors through "Freight Villages" and "Community Jetties" promotes local trade, MSMEs, and agro-processing industries.

Connectivity to Landlocked Regions: Indo-Bangladesh Protocol Route (IBPR) and NW-2 (Brahmaputra) provide the Northeast with a shorter, cheaper transit route, bypassing the narrow Siliguri Corridor.

What should be the way forward?

Ensuring "Assured Depth": Moving away from ad-hoc dredging to Performance-based Dredging Contracts that guarantee a minimum Least Available Depth (LAD) of 2.5 to 3 meters year-round, giving shippers the confidence to sign long-term contracts. (Source: World Bank)

Intermodal Integration: Developing Rail-River-Road connectivity at all Multi-Modal Terminals (like Varanasi and Sahibganj). Without "last-mile" rail sidings, the cost advantage of water transport is lost in the final delivery.

Hybrid Vessel Technology: Promoting the indigenous manufacturing of Low-Draft High-Capacity vessels designed for Indian river conditions, and incentivizing the shift to Hydrogen and Electric propulsion under the Harit Nauka guidelines.

Demand Side Incentives: Expanding schemes like the Jalvahak Scheme to include more commodities beyond bulk goods, encouraging Fast-Moving Consumer Goods (FMCG) and automobile companies to use rivers for distribution.

Sustainable Ecosystem Management: Implementing "Soft Engineering" for river training to minimize the ecological impact on the Gangetic Dolphin and other aquatic life, ensuring that navigation and conservation coexist.

Conclusion

Inland waterways are vital for the "Viksit Bharat @ 2047" goal, aiming to strengthen manufacturing by lowering logistics costs below 10% of GDP. Expanding the Jal Marg Vikas Project, India must develop a digitalized, sustainable transport network that meets international benchmarks like the Rhine or Yangtze.

Source: PIB