Inland Waterways Authority of India (IWAI): Unlocking India’s Maritime Potential

29 Apr Inland Waterways Authority of India (IWAI): Unlocking India’s Maritime Potential

This article covers “Daily Current Affairs” and the Topic of the  Inland Waterways Authority of India (IWAI): Unlocking India’s Maritime Potential

SYLLABUS MAPPING:

GS-03-Economic development, infrastructure, transportation:Inland Waterways Authority of India (IWAI): Unlocking India’s Maritime Potential

FOR PRELIMS

Role of the Inland Waterways Authority of India (IWAI) & What are the key components of the project.

FOR MAINS

Impact of the National Waterways Act, 2016 on India’s inland navigation ecosystem and challenges that have hindered the growth of IWT.

Why in the News? 

The Inland Waterways Authority of India (IWAI) reported a record cargo movement of 145.5 million tonnes in the fiscal year 2024–25, marking a significant milestone in inland water transport.According to the Ministry of Ports, Shipping and Waterways, the number of national waterways increased from 5 to 111, and the operational length expanded from 2,716 km to 4,894 km.The government has also launched the Jalvahak Scheme, offering 35% operating cost incentives to promote cargo movement on major routes such as NW-1, NW-2, and NW-16. IWAI aims to increase the modal share of freight transport through waterways from 2% to 5%, targeting over 200 million metric tonnes by 2030 and 500 million metric tonnes by 2047 under the Maritime India Vision 2030 and Amrit Kaal Vision 2047.

What is IWAI and Their Mandate

Established on 27 October 1986, the IWAI functions under the Ministry of Ports, Shipping and Waterways. It acts as the nodal authority for the regulation, maintenance, and development of inland waterways across India. The institution plays a critical role in policy formulation, infrastructure development, and ensuring the environmental integrity of waterways.

Inland Waterways in India: Status, Data & Facts

India is blessed with a labyrinth of rivers, creeks, canals, and backwaters. The country has a navigable length of about 14,500 km, of which approximately 5,200 km is suitable for cargo transport. Despite this, the share of IWT in India’s modal transport mix remains low.

1. 111 National Waterways (NWs): With the passing of the National Waterways Act, 2016, 111 waterways were declared as National Waterways, creating a statutory framework for their development. Of these, about 20–25 NWs have been prioritized based on techno-economic viability studies.
2. Major National Waterways: NW-1 (Ganga-Bhagirathi-Hooghly river system) stretches 1,620 km, NW-2 (Brahmaputra) covers 891 km, and NW-3 (West Coast Canal) spans 205 km in Kerala. These three are the most commercially developed waterways with active cargo and passenger services.
3. Cargo Movement Trends: Cargo volumes moved through IWT rose from 3.1 million tonnes in 2008–09 to over 108.8 MTPA in 2022–23, reflecting the impact of targeted government interventions. Major commodities moved include coal, fly ash, food grains, cement, and petroleum products.
4. Key Waterway Projects: Flagship initiatives like the Jal Marg Vikas Project (JMVP) aim to provide year-round navigation on NW-1 with multimodal terminals, navigational locks, and barge construction programs. The Eastern Waterways Grid is another ambitious vision to connect Northeast India via water routes.
5. Multimodal Terminals: State-of-the-art multimodal terminals at Varanasi, Sahibganj, Haldia, and Jogighopa offer cargo handling, warehousing, container storage, customs clearance, and intermodal connectivity, improving cargo efficiency significantly.
6. Passenger Ferry Services: IWAI has launched ferry services connecting urban hubs across rivers, reducing travel times drastically. Ro-Pax and Ro-Ro ferries have also opened new possibilities for vehicle transport across rivers, avoiding long circuitous road journeys.
7. Technology in IWT: Digital innovations like RIS ensure real-time monitoring, hazard warnings, and efficient vessel scheduling. Future plans include the use of AI-based predictive models to improve navigation and traffic management.
8.International Cooperation: Inland connectivity with Bangladesh under the Protocol on Inland Water Transit and Trade (PIWTT) enables Indian vessels to access Bangladeshi ports, drastically reducing distance for Northeast-bound cargo by 800–1,200 km.

Role of Inland Waterways in Boosting India’s Economy

1. Cost-Effective Transport: Waterways significantly lower logistics costs, crucial for making Indian products globally competitive. Studies show that an increased IWT share can reduce overall supply chain costs by up to 20%, a major boost to trade competitiveness.
2. Fuel Efficiency: Barges carry large quantities of goods with less fuel, leading to savings in national energy expenditure. A typical 2,000-ton barge can replace 100 trucks, thus reducing diesel consumption substantially.
3. Reduced Congestion: Diverting cargo to waterways relieves pressure on national highways and congested urban centers. This not only shortens travel times but also improves the lifespan of critical road infrastructure.
4. Green Logistics: Inland shipping emits much lower greenhouse gases per ton-km transported. If India increases IWT share from the current 2% to even 5%, it can lead to a massive reduction in annual carbon emissions.
5. Employment Generation: Inland ports, terminals, cargo handling facilities, and ancillary services generate both direct and indirect employment. Small business ecosystems around river ports stimulate rural economies and curb urban migration.
6. Better Access for NE India: Inland routes through Bangladesh, utilizing the Brahmaputra and Meghna rivers, offer cost-effective access to the Northeast. This not only strengthens economic ties but also enhances strategic connectivity to border states.
7. Boost to Tourism and Heritage: Developing river cruises and heritage routes can create a billion-dollar river tourism economy. Cultural and religious tourism linked with waterways (like Varanasi-Kolkata) holds immense potential.
8. Support for Bulk Cargo Industries: Cement, fertiliser, coal, food grain, and petroleum sectors benefit significantly from cheaper water transport. Backhaul cargo opportunities further enhance the economics of IWT, creating a virtuous trade cycle.

Challenges in Tapping the Inland Waterways Potential

1. Limited Water Depth: Many rivers suffer from insufficient draft during dry seasons. Dredging is costly and environmentally sensitive, and in some cases, even frequent dredging cannot guarantee sustainable depths.
2. Lack of Cargo Aggregation: The scattered nature of industries along rivers makes it difficult to consolidate cargo for efficient barge operation. Unlike coastal shipping, inland shipping needs robust aggregation hubs for economies of scale.
3. Infrastructure Gaps: Key missing infrastructure includes adequate loading/unloading facilities, storage spaces, and container handling equipment. Without end-to-end seamlessness, shippers prefer road transport.
4. Slow Vessel Movement: River navigation is slower due to curves, bridges, fishing activities, and unpredictable sedimentation. The lack of night navigation facilities further restricts operational windows.
5. Environmental and Social Concerns: Projects involving river deepening and bank strengthening often trigger resistance from environmental groups. Ensuring ecological safeguards is necessary to maintain a social license to operate.
6. Low Private Sector Participation: Although government projects exist, private investments in vessels, terminals, and logistics services are slow. Concerns around regulatory stability and guaranteed returns deter many investors.
7. Inter-agency Coordination: Inland waterways often overlap jurisdictions of irrigation, fisheries, shipping, and environment departments. Fragmented governance slows decision-making and hampers project execution.
8. Lack of Awareness and Promotion: Many logistics providers and industries are unaware of how to use waterways for cargo movement. Active marketing campaigns, success stories, and financial incentives are necessary to change mindsets.

Recommendations

1. Assured Minimum Navigable Depth: Government must focus on sustainable and need-based dredging using advanced technologies. Predictive hydrological models and low-impact dredging can balance navigation with environmental concerns.
2. Strengthen Infrastructure: Development of multimodal logistics parks near waterways should be prioritized. Port-led industrialization models like Sagarmala should be extended to inland river ports as well.
3. Digital Ecosystem: A fully integrated digital infrastructure connecting cargo owners, vessel operators, and terminal managers will increase operational efficiency. Blockchain-based cargo tracking could be the next frontier.
4. Incentivize Modal Shift: Financial incentives, concessional freight rates, and policy nudges should be provided to cargo owners willing to shift part of their logistics to waterways. Green certifications for industries using IWT can also be promoted.
5. Public-Private Partnerships (PPP): Structured, long-term PPP models with fair risk-sharing mechanisms can attract private capital into the sector. Clear timelines and dispute resolution mechanisms must be included.
6. Skill Development and Capacity Building: Specialised courses on inland navigation, river port management, and river vessel engineering should be introduced in maritime universities. This will create a pool of trained professionals for the sector.
7. Integrated Policy Approach: An apex National Inland Waterways Coordination Authority can synchronize efforts among various ministries, departments, and states. This body can also guide strategic investments and funding allocation.
8. International Collaboration: India should forge greater partnerships with European Union, ASEAN, and Bangladesh on inland shipping technology, regulatory best practices, and vessel design innovations.

Conclusion

The inland waterways network represents a hidden economic and environmental treasure for India. With sustained investment, regulatory clarity, and private sector engagement, IWAI can help unlock this potential. Inland Waterways offer a future where goods move faster, cheaper, and greener — transforming India into a global trade leader while preserving its environment. It is time to sail ahead and harness the true power of India’s rivers  successful development of inland waterways will align India with its global climate commitments and promote inclusive growth across remote regions. With visionary planning and collective action, India’s rivers can once again become the lifelines of national prosperity and connectivity.

Download Plutus IAS Current Affairs (Eng) 29th April 2025

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