The Indian government is preparing to introduce subsidies to encourage inland waterway transport of goods. The initiative is aimed at promoting the use of inland waterways as a more sustainable and cost-effective mode of transport, thereby reducing pressure on road and rail infrastructure.

Important aspects of the planned subsidies are:

Cost reduction: The subsidies are intended to offset the operational costs for companies using inland waterways for freight transport. By making this mode of transport financially more attractive, the government hopes to increase its acceptance.

Environmental benefits: Promoting inland waterways fits in with the government’s focus on environmental sustainability. Waterway transport is generally more environmentally friendly than road and rail transport, which helps to reduce overall CO2 emissions.

Infrastructure Support: The initiative will be complemented by investments in the development and maintenance of waterway infrastructure. This includes improving ports, terminals and navigation facilities to support efficient and safe cargo movement.

Incentives for shippers: Shippers and logistics companies will receive financial incentives to encourage the use of inland waterways. These incentives are expected to consist of direct subsidies and possibly tax credits.

Stimulating economic activity: By supporting inland waterway transport, the government aims to stimulate economic activity in regions that are connected by these routes. This can lead to job creation and economic development in coastal and inland areas.

Regulatory Framework: A clear regulatory framework will be established to facilitate the smooth implementation of the subsidies and ensure compliance with safety and operational standards.

The introduction of these subsidies is part of a broader strategy to modernise and expand India’s transport infrastructure, making it more efficient and less reliant on traditional road and rail networks. The initiative also supports the country’s commitment to sustainable development and the promotion of alternative modes of transport.

The subsidies are expected to increase the attractiveness of inland waterways for freight transport, leading to a more balanced and resilient logistics network in India.