Inland waterways offer significant opportunities for growth via PPPs

India’s inland waterways, a cost-effective, environmentally sustainable and efficient mode of transport, saw little investment for decades.

As a result, much of its infrastructure, such as canals and shipping channels, is not usable.

The cost of transporting one tonne of freight by waterways is about Rs 1.06 per km, compared with Rs 1.36 per km by railways and Rs 2.50 per km by roads. However, with minimal traction in the sector, cargo transportation depends heavily on roads and railways.

Water transport produces lower emissions, less noise and consumes less energy, making it an environmentally friendly alternative to the traditional road and rail transport.

The government started changing its approach in 2016, when it declared the development of 106 new national waterways. The move was a turning point for the sector, as the number of operational waterways increased from three in fiscal 2014 to 26 in fiscal 2024. Also, the budgetary support for inland waterways transport (IWT) has increased in recent fiscals.