On Sunday, the Union government launched the ‘Jalvahak’ scheme, a significant initiative aimed at promoting the use of inland waterways for cargo transport. The scheme is designed to incentivize the movement of goods via National Waterways 1 (Ganga), 2 (Brahmaputra), and 16 (Barak river), marking a major step towards sustainable and cost-effective transportation.
Key Features of the Jalvahak Scheme
- Incentives for Cargo Owners: The scheme provides up to 35% reimbursement on operating costs for cargo owners transporting goods over distances exceeding 300 km via inland waterways.
- Duration: The scheme will be valid for three years.
- Objective: It aims to reduce logistics costs, decongest road and rail networks, and unlock the trade potential of inland waterways.
- Target Audience: The scheme is designed to benefit major shipping companies, freight forwarders, and trade bodies.
Official Launch and Inauguration
Union Minister of Ports, Shipping & Waterways, Sarbananda Sonowal, officially launched the scheme by flagging off three cargo ships. He also inaugurated the fixed scheduled service of vessels. The scheme’s focus is on optimizing supply chains for efficient cargo transport, with the goal of reducing the burden on traditional transportation networks.
Routes and Cargo Movement
The fixed-schedule sailing service will operate on the following routes:
- Kolkata-Patna-Varanasi
- Kolkata-Pandu (Guwahati)
These routes will showcase the potential of inland waterways for eco-friendly and efficient cargo transportation.
Economic and Environmental Impact
- Investment: The scheme is projected to attract an investment of Rs 95.4 crore by 2027.
- Modal Shift: The initiative is expected to facilitate a modal shift of 800 million tonne-kilometres.
- Growth in Cargo Volumes: Cargo volumes on national waterways have increased by over 700% from 18.07 million tonnes in 2013-14 to 132.89 million tonnes in 2023-24. The government aims to achieve 200 million tonnes by 2030 and 500 million tonnes by 2047.
Vessels Flagged Off
The following vessels were flagged off as part of the scheme:
- MV Trishul: Transporting 1,500 tonnes of cement to Guwahati via the Indo-Bangladesh Protocol Route.
- MV Aai: Carrying 1,000 tonnes of gypsum to Patna for a cement company.
- MV Homi Bhaba: Transporting 200 tonnes of coal to Varanasi.
Future Prospects and Challenges
- Bilateral Trade: Despite ongoing unrest in Bangladesh, Union Minister of State for Shipping Shantanu Thakur assured that there were no concerns regarding bilateral trade, with the government closely monitoring the situation.
- Under-utilization of Freight Transport: While India has an extensive inland waterway network spanning 20,236 km, its freight transport potential remains under-utilized compared to countries like the US and China.
UltraTech’s Contribution to Inland Waterways
In 2023, UltraTech Cement leveraged inland and coastal waterways to transport 57,000 metric tonnes of phosphogypsum from Paradeep port in Odisha to its manufacturing unit in Gujarat. This initiative was a first-of-its-kind in India and aligns with the company’s sustainable supply chain framework.
Multiple-Choice Questions (MCQs):
1. What is the primary objective of the ‘Jalvahak’ scheme?
A) To reduce pollution in cities
B) To incentivize cargo transport via inland waterways
C) To increase air transport of goods
D) To improve road infrastructure
Answer: B) To incentivize cargo transport via inland waterways
2. Which of the following routes will be part of the fixed-schedule sailing service under the Jalvahak scheme?
A) Kolkata-Mumbai
B) Kolkata-Patna-Varanasi
C) Kolkata-Bangalore
D) Kolkata-Chennai
Answer: B) Kolkata-Patna-Varanasi
3. What is the reimbursement percentage for cargo owners transporting goods over 300 km via inland waterways under the Jalvahak scheme?
A) 10%
B) 25%
C) 35%
D) 50%
Answer: C) 35%
4. How much investment is projected for the Jalvahak scheme by 2027?
A) Rs 50 crore
B) Rs 95.4 crore
C) Rs 100 crore
D) Rs 150 crore
Answer: B) Rs 95.4 crore
5. What is the expected modal shift in tonne-kilometres under the Jalvahak scheme?
A) 500 million tonne-kilometres
B) 800 million tonne-kilometres
C) 1 billion tonne-kilometres
D) 2 billion tonne-kilometres
Answer: B) 800 million tonne-kilometres
6. What was the first-of-its-kind initiative by UltraTech Cement in 2023 related to inland waterways?
A) Transporting cement from Odisha to Gujarat
B) Transporting phosphogypsum from Paradeep port to Gujarat
C) Transporting gypsum from Rajasthan to Maharashtra
D) Transporting coal from West Bengal to Tamil Nadu
Answer: B) Transporting phosphogypsum from Paradeep port to Gujarat