Jalvahak Scheme, Objective and Criteria for Incentive

The Jalvahak scheme is a major initiative launched by the Government of India to promote cargo movement through inland waterways. It aims to decongest rail and road networks while offering an environmentally friendly and cost-effective alternative for long-haul freight transportation.

About Jalvahak Scheme

• Aim: To incentivize cargo transport, decongest roadways and railways, and boost the use of waterways as an economical, eco-friendly, and efficient mode of transport.
• Launched by – Ministry of Ports, Shipping & Waterways.
• Implementing Agency: It will be implemented jointly by the Inland Waterways Authority of India (IWAI) and Inland & Coastal Shipping Ltd (ICSL) -a subsidiary of the Shipping Corporation of India.
• Criteria for Incentive: It will provide direct incentive to transport goods via inland waterways for a distance of more than 300 kms.
• The scheme will remain valid for 3 years.
• Target: 200 million metric tons (MT) cargo movement by 2030 and 500 MT by 2047.

Incentive

It will offer up to 35% reimbursement of the total operating costs for transporting cargo on the National Waterways (NW) 1, 2 and 16.

• NW 1: From Kolkata to Varanasi via Patna (Ganga)
• NW 2: From Kolkata to Pandu in Guwahati (Brahmputra)
• NW 16: Via the Indo Bangladesh Protocol Route (IBPR) (Barak)

Benefits of the Jalvahak scheme

• Reduced logistics costs: Water transportation is generally more cost-effective than road or rail transport, leading to lower logistics costs for businesses.
• Decongested roads and railways: Shifting cargo to waterways can help alleviate congestion on road and rail networks.
• Environmental benefits: Water transportation has a lower carbon footprint compared to road and rail, contributing to a greener transportation system.
• Economic development: The development of inland waterways can boost economic activity in regions along the waterways.

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