The Jalvahak Scheme - 2024

Context:

Union Government unveils ‘Jalvahak’ Scheme to boost Inland Waterways

About:

The Jalvahak Scheme is a cargo promotion initiative launched by the Union government to encourage the transportation of long-haul cargo via inland waterways in India. This scheme aims to reduce logistics costs, decongest road and rail networks, and harness the trade potential of inland waterways.

Key Details of the Jalvahak Scheme:

• Nodal Ministry: Ministry of Ports, Shipping & Waterways (MoPSW)
• Implementing Agencies: Inland Waterways Authority of India (IWAI) and Inland & Coastal Shipping Ltd (ICSL), a subsidiary of the Shipping Corporation of India.

Objectives:

• Promote Long-Haul Cargo Transportation: The scheme is designed to incentivize the movement of goods over long distances through India's national waterways, which is more efficient and environmentally friendly compared to road and rail transport.
• Reduce Logistics Costs: By shifting cargo transportation to waterways, the scheme aims to reduce the overall cost of logistics in India.
• Decongest Road and Rail Networks: The scheme seeks to alleviate congestion on roads and railways by diverting cargo traffic to waterways, thereby improving overall transport efficiency.

National Waterways Covered:

1. NW1: River Ganga
2. NW2: River Brahmaputra
3. NW16: River Barak

Incentives Offered:

• Cargo owners are eligible for up to 35% reimbursement on operating costs for transporting goods over distances of more than 300 km via waterways.

Scheduled Services:

• The scheme facilitates fixed-day scheduled sailings between key locations, such as:
• Kolkata, Patna, Varanasi, and Pandu (Assam).

Validity:

• The Jalvahak Scheme is initially valid for three years, with the aim of shifting 800 million tonnes of cargo over 800 million tonne-kilometers by 2027.