Inland Water Transport: Policies, Institutions and Schemes in India

India possesses an extensive network of inland waterways spanning approximately 14,500 kilometers, comprising navigable rivers, canals, backwaters, creeks, and estuaries. Inland Water Transport (IWT) provides a fuel-efficient, cost-effective, and environmentally sustainable alternative to land-based freight, emitting lower carbon emissions per tonne-kilometer compared to road and rail. Despite its strategic advantages, IWT accounts for a small share of total domestic freight movement, prompting systematic regulatory reform, infrastructural investment, and statutory backing to expand modal share and integrate water channels into the national transport grid.

Statutory and Policy Framework

National Waterways Act, 2016

• The legislation declared 111 inland waterways across 23 States and 4 Union Territories as National Waterways (NWs).
• It integrated 5 pre-existing National Waterways with 106 newly designated stretches to promote unified development.
• The law places the responsibility for development, maintenance, and regulation of navigation channels on these declared routes with the Central Government.
• It aims to standardize navigation depths, vessel dimensions, and night navigation capabilities across primary river basins.

Inland Vessels Act, 2021

• The Act replaced the legacy Inland Vessels Act of 1917, creating a unified central statutory framework across India instead of fragmented state-level rules.
• It establishes a centralized administrative portal for vessel registration, surveyor standards, and operational certification.
• It sets uniform safety regulations, environmental pollution controls, and mandatory insurance mandates for all mechanized inland vessels.
• The statute empowers the Union Government to prescribe standards for hull construction, equipment maintenance, and life-saving apparatus.

Inland Water Transport Policy, 2001

• This policy introduced early measures encouraging private sector participation in fairway development, terminal management, and vessel operation through Build-Own-Operate-Transfer models.
• It introduced fiscal incentives, capital subsidies, and duty exemptions on IWT equipment and vessel manufacturing.

Institutional Setup for Waterway Governance

Inland Waterways Authority of India (IWAI)

• Constituted on October 27, 1986, under the Inland Waterways Authority of India Act, 1985.
• Functions as a statutory body under the Ministry of Ports, Shipping and Waterways, with headquarters in Noida, Uttar Pradesh.
• Mandated to develop, maintain, and manage infrastructure on declared National Waterways, including fairway dredging, terminal construction, and navigational aids.
• Maintains regional offices across key inland hubs including Kolkata, Guwahati, Patna, and Kochi.

Central Inland Water Transport Corporation (CIWTC)

• Established as a public sector undertaking in 1967 to operate river vessels and offer shipyard repair services, primarily in the Eastern and North-Eastern regions.
• Dissolved under government restructuring to allow private sector river transport operators and specialized IWAI operations to manage river logistics.

Major Flagship Schemes and Infrastructure Projects

Jal Marg Vikas Project (JMVP)

• Implemented by IWAI with financial and technical assistance from the World Bank.
• Aims to capacity-augment the Haldia-Varanasi stretch of National Waterway-1 (River Ganga) for commercial navigation of vessels up to 1,500 to 2,000 tonnes capacity.
• Completed key operational assets include Multi-Modal Terminals at Varanasi (Uttar Pradesh), Sahibganj (Jharkhand), and Haldia (West Bengal), alongside the Inter-Modal Terminal at Kalughat (Bihar).
• Constructed a modern navigational lock at Farakka (West Bengal) to permit continuous vessel movement.
• Integrated Project Arth Ganga under JMVP to drive local community economic development through riverine trade, constructing over 66 community jetties along NW-1.

Sagarmala Programme

• Focuses on port-led development, incorporating coastal shipping and inland waterways into the national logistics network.
• Funds last-mile connectivity projects connecting river terminals with rail tracks, national highways, and sea ports.

Jalvahak Cargo Promotion Scheme and CAR-D Portal

• Jalvahak Scheme offers cargo promotion incentives to encourage private logistics operators to shift freight from road and rail to water channels.
• CAR-D (Cargo Data) portal serves as a web interface developed by IWAI to collect, analyze, and share real-time cargo movement, cruise traffic, and fairway data across operational waterways.

Major Operational National Waterways

Cross-Border and Protocol Routes

Indo-Bangladesh Protocol (IBP) Route

• Governed by the Protocol on Inland Water Transit and Trade signed between India and Bangladesh in 1972.
• Allows inland vessels of both nations to navigate designated river routes connecting Kolkata and Haldia to Assam (NW-2) and Tripura through Bangladeshi waterways.
• Reduces transit time and distance for freight bound for North-Eastern states compared to the land-based Siliguri Corridor.
• Includes operational ports of call such as Narayanganj, Khulna, Mongla, and Sirajganj in Bangladesh.

Key Challenges Facing the IWT Sector

• Siltation and Shallow Least Available Depth (LAD): Seasonal river flow variations cause siltation, requiring continuous maintenance dredging to ensure year-round navigation.
• Infrastructural Gaps: Shortage of night-navigation aids, automated locks, standardized river terminals, and multi-modal integration points.
• Seasonal Flow Variability: Reduced water flow during non-monsoon months limits vessel draft capacity, particularly on northern rivers.
• Financing and Fleet Limitations: High initial costs for specialized shallow-draft vessel construction paired with limited commercial lending for rivercraft.

Key Facts for Quick Revision

• Total navigable length of inland waterways in India stands at approximately 14,500 km.
• The National Waterways Act, 2016 declared 111 National Waterways across 23 States and 4 Union Territories.
• Inland Waterways Authority of India (IWAI) was established on October 27, 1986, with headquarters at Noida, Uttar Pradesh.
• The Inland Vessels Act, 2021 replaced the century-old Inland Vessels Act of 1917.
• National Waterway-1 (Ganga-Bhagirathi-Hooghly) is the longest operational National Waterway in India, stretching 1,620 km.
• The Jal Marg Vikas Project (JMVP) is supported by the World Bank to develop navigation capabilities on NW-1.
• Multi-Modal Terminals under JMVP are operational at Varanasi, Sahibganj, and Haldia.
• The Indo-Bangladesh Protocol (IBP) on Inland Water Transit and Trade was original signed in 1972.
• Maritime India Vision 2030 targets increasing the modal share of IWT in domestic freight from 2% to 5%.
• IWT consumes significantly lower fuel per tonne-km compared to road and rail transport.