What is ‘Jalvahak Scheme’?

The Government of India has introduced the Jalvahak scheme to enhance cargo transport via inland waterways, aiming to encourage sustainable and economical transportation along major rivers such as the Ganga, Brahmaputra, and Barak. Union Minister Sarbananda Sonowal inaugurated the scheme by launching three cargo ships and a fixed-schedule vessel service.

Objectives of the Jalvahak Scheme

The Jalvahak scheme seeks to lower logistics costs and alleviate the burden on road and rail networks and aims to unlock the commercial potential of waterways, thereby boosting trade and economic growth.

Financial Incentives for Cargo Owners

Cargo owners transporting goods over 300 kilometers via waterways can receive up to 35% reimbursement of their operating costs. This financial support is designed to encourage the use of waterways for long-distance transport.

The scheme will operate for three years and is jointly managed by the Inland Waterways Authority of India (IWAI) and Inland & Coastal Shipping Ltd (ICSL). This collaboration is expected to optimise supply chains for shipping companies and freight operators.

Projected Impact on Cargo Movement

The government anticipates shifting 800 million tonne-kilometers of cargo to waterways by 2027, supported by an investment of ₹95.4 crore. Fixed-schedule services will connect key routes, including Kolkata-Patna-Varanasi and Kolkata-Guwahati.

Three cargo ships were launched – MV Trishul carries cement to Guwahati, MV Aai transports gypsum to Patna, and MV Homi Bhaba delivers coal to Varanasi. These vessels exemplify the scheme’s commitment to efficient waterway transport.

Growth in Waterway Cargo Movement

Cargo movement on national waterways surged from 18 million tonnes in 2013-14 to 132.89 million tonnes in 2023-24, marking a growth of over 700%. The government aims to reach 200 million tonnes by 2030 and 500 million tonnes by 2047.

India boasts over 20,000 kilometres of inland waterways, yet its freight transport potential remains largely untapped compared to nations like the US and China. The government is keen to leverage this resource for economic development.

GKToday Facts for Exams:

1. Jalvahak Scheme The Jalvahak Scheme promotes sustainable cargo transport via inland waterways. It aims to lower logistics costs and enhance trade potential across major Indian rivers.
2. IWAI The Inland Waterways Authority of India (IWAI) manages India’s national waterways. It focuses on developing and regulating inland water transport for economic growth and environmental sustainability.
3. ICSL Inland & Coastal Shipping Ltd (ICSL) is a subsidiary of the Shipping Corporation of India. It collaborates with IWAI to optimise supply chains and enhance cargo transport efficiency.
4. MV Trishul MV Trishul is a cargo ship transporting cement to Guwahati. It is part of the Jalvahak Scheme, showcasing the potential of waterways for efficient goods movement.

Month: Current Affairs - December, 2024

Category: Government Schemes Current Affairs