Centre will give Kerala Rs 1,500 crore for national waterways development: Union min
KOCHI: The Ministry of Ports, Shipping and Waterways will provide Rs 1,500 crore for the development of the national waterways in Kerala, Union Minister Sarbananda Sonowal said in Kochi on Friday.
Interacting with media persons after attending the third Inland Waterways Development Council (IWDC) meeting, the minister for ports, shipping and waterways said the Jal Vahak scheme that incentivises cargo movement through waterways and development of river cruise jetties will be implemented in Kerala.
Kerala emerged as a key focus area at IWDC with a series of major announcements aimed at strengthening inland water transport and logistics in the state being made. “The Jal Vahak cargo promotion scheme will be implemented in Kerala. Under it, operators transporting cargo through waterways for a distance of more than 200 km will get an incentive equal to 35% of the operating cost. This will encourage shifting a share of rail and road cargo traffic to national waterways,” Sonowal said.
The scheme is expected to encourage private participation by enabling cargo owners to hire vessels operated by entities other than IWAI or ICSL, making it particularly attractive for major shipping companies, freight forwarders, trade bodies and operators handling bulk and containerised cargo. Initially valid for three years, the scheme will help optimise supply chain networks and enhance the commercial viability of water-based logistics.
The IWDC also declared the commencement of Fixed Day Scheduled Sailing Services on commercially viable stretches to demonstrate the readiness of waterways as an efficient, cost-effective and environmentally sustainable mode of cargo transport.
The Kerala package also includes the development of river cruise jetties and induction of one survey vessel, strengthening the state’s capacity for passenger movement, tourism and safe navigation.
The council was appraised about major new projects worth over Rs 900 crore, including development of a slipway facility at Kochi, which will help operators take up timely repair and maintenance of vessels.
Cargo movement on national waterways increased from 18 million tonnes in 2013-14 to 145.84 million tonnes in 2024-25, while the number of operational national waterways grew tenfold from three to 32. Six more national waterways will be completed in 2026.
The number of luxury river cruise vessels has increased from five to 25, highlighting the growing confidence of industry. The number of operational terminals has gone up from 15 to 25, and floating jetties from 30 to 100. “Among the five national waterways in Kerala, three are fully operational and we carry about 3 million metric tonnes of cargo per year,” said ministry secretary Vijay Kumar. Inland Waterways Authority of India chairperson Sunil Paliwal, vice-chairman Sunil Kumar Singh and senior officials, besides ministers from Himachal Pradesh, Bihar, Nagaland, Arunachal Pradesh, Uttar Pradesh and Punjab, attended the meeting.