NATIONAL LOGISTICS POLICY, INLAND WATERWAYS DEVELOPMENT AND MULTIMODAL CONNECTIVITY

Key Highlights:

• Cargo movement on National Waterways (NWs) increased from 18 Million Metric Tons (MMT) in 2013-14 to a projected 218 MMT in 2025-26.
• Inland Water Transport (IWT) is highlighted as an economic and environmentally friendly mode, with lower freight costs and reduced carbon emissions compared to road and rail.
• Government has implemented digital platforms like Maritime Single Window (MSW) Sagar Setu and CAR-D Portal for multimodal logistics integration and data management.
• Significant infrastructure development includes 66 community jetties, 20 floating terminals, 3 Multi-Modal Terminals (MMT), and a new Navigation Lock at Farakka on various NWs.
• Key policy measures include the Jalvahak Scheme, extension of tonnage tax to inland vessels, and the National Waterways (Construction of Jetties / Terminals) Regulations 2025 to attract private investment.
• The Coastal Shipping Act, 2025 and the Coastal Cargo Promotion Scheme aim to increase the share of inland waterways and coastal shipping to 12% by 2047.
• Budgetary allocation for NWs across various states shows a total of ₹514.77 crore in 2022-23, rising to ₹1074.48 crore in 2025-26.

Detailed Insights:

• The growth in cargo movement on NWs signifies the government's successful efforts in promoting Inland Water Transport (IWT) as a viable alternative.
• IWT offers substantial economic benefits, with freight costs of ₹1.06/TKm, significantly lower than railways (₹1.36/TKm) and highways (₹2.50/TKm).
• It is a more environmentally friendly option, emitting less Greenhouse Gases (GHGs) and causing less air, noise, and soil/water pollution compared to road and rail transport.
• MSW Sagar Setu acts as a centralized digital platform for real-time exchange of maritime logistics information, integrating with systems like Freight Operations Information System and Unified Logistics Interface Platform.
• The CAR-D Portal developed by Inland Waterways Authority of India (IWAI) facilitates collection, compilation, analysis, and dissemination of cargo and cruise movement data on NWs.
• The Jalvahak Scheme provides a 35% incentive to cargo owners and for scheduled services on NW-1, NW-2, and NW-16 via the Indo Bangladesh Protocol (IBP) route.
• Extension of the tonnage tax scheme to inland vessels under the Indian Vessels Act, 2021, aims to boost competitiveness and encourage greater use of inland waterways.
• The National Waterways (Construction of Jetties / Terminals) Regulations 2025 provides a clear regulatory framework to attract private sector investment in IWT infrastructure.
• Jalyan & Navic is a central database and portal for digital registration of vessels and crew, enhancing ease of doing business and aiding planning.
• Projects like Multi-Modal Logistics Parks (MMLP) at Varanasi and Integrated Cluster-cum-Logistics Park at Sahibganj are developing cargo aggregation hubs to address multimodal connectivity issues.
• The operationalization of IBP route no. 5 & 6 between Maia and Sultanganj further enhances regional connectivity and trade.
• Public Sector Undertakings (PSUs) are being encouraged to shift a percentage of their cargo to IWT mode to meet Maritime India Vision (MIV) targets.
• The Coastal Shipping Act, 2025, effective from March 15, 2026, aims to promote coastal shipping by reducing compliance burden and expanding entities that can charter vessels.

Key Concepts Involved:

• Inland Water Transport (IWT): Movement of goods and passengers through navigable rivers, canals, and lakes within a country.
• National Waterways (NWs): Designated rivers and canals declared by the government as national waterways for navigation and transport.
• Jal Marg Vikas Project (JMVP): A project for capacity augmentation of NW-1 (Ganga-Bhagirathi-Hooghly river system) for navigation.
• Maritime Single Window (MSW) Sagar Setu: A digital platform for real-time exchange of maritime logistics information, integrating various stakeholders.
• Tonnage Tax: A special taxation policy for shipping companies where tax is based on the size (tonnage) of the vessel, not actual profits.
• Indo Bangladesh Protocol (IBP) Route: Bilateral agreement allowing vessels to transit through each other's waterways for trade and transit.
• Coastal Shipping: Movement of cargo and passengers by sea along the coast of a country, typically between domestic ports.
• Multimodal Logistics: The process of transporting goods using two or more modes of transport under a single contract, often involving seamless integration.