Centre Allocates Rs 15 Billion for Kerala Waterways

30 Jan 2026 CW Team

Sonowal said Kerala has emerged as a key focus area for inland water transport, with a series of initiatives planned to strengthen logistics, tourism and passenger movement. The Jal Vahak scheme, which incentivises cargo movement through waterways and supports the development of river cruise jetties, will be implemented in the state.

Under the Jal Vahak cargo promotion scheme, operators transporting cargo through waterways over distances exceeding 200 kilometres will receive incentives equal to 35 per cent of operating costs. The scheme is expected to encourage a shift of freight from road and rail to national waterways, improving cost efficiency and environmental sustainability.

The initiative is also designed to attract private participation by allowing cargo owners to hire vessels operated by entities beyond government agencies. This is expected to benefit shipping companies, freight forwarders, trade bodies and bulk or container cargo operators. Initially valid for three years, the scheme aims to optimise supply chains and enhance the commercial viability of water-based logistics.

The IWDC also announced the launch of fixed-day scheduled sailing services on commercially viable stretches, demonstrating the readiness of waterways as an efficient and sustainable mode of cargo transport. Kerala’s development package further includes new river cruise jetties and the induction of a survey vessel to strengthen navigation, tourism and passenger services.

The council reviewed major new projects worth over Rs 9 billion, including the development of a slipway facility in Kochi to support timely vessel repair and maintenance. These investments are expected to improve operational efficiency and infrastructure resilience in the state’s inland water transport ecosystem.

Cargo movement on national waterways has risen sharply from 18 million tonnes in 2013–14 to 145.84 million tonnes in 2024–25, while the number of operational national waterways has increased from three to 32. Six additional waterways are expected to become operational by 2026.

The number of luxury river cruise vessels has grown from five to 25, reflecting rising industry confidence. Operational terminals have increased from 15 to 25, while floating jetties have expanded from 30 to 100. Among Kerala’s five national waterways, three are fully operational, carrying around 3 million tonnes of cargo annually, according to the ministry.

The initiatives are expected to strengthen Kerala’s role in India’s inland water transport network, improve logistics efficiency and accelerate the shift towards sustainable transport modes.

The Ministry of Ports, Shipping and Waterways will provide Rs 15 billion for the development of national waterways in Kerala, Union Minister Sarbananda Sonowal announced in Kochi following the third Inland Waterways Development Council (IWDC) meeting. Sonowal said Kerala has emerged as a key focus area for inland water transport, with a series of initiatives planned to strengthen logistics, tourism and passenger movement. The Jal Vahak scheme, which incentivises cargo movement through waterways and supports the development of river cruise jetties, will be implemented in the state. Under the Jal Vahak cargo promotion scheme, operators transporting cargo through waterways over distances exceeding 200 kilometres will receive incentives equal to 35 per cent of operating costs. The scheme is expected to encourage a shift of freight from road and rail to national waterways, improving cost efficiency and environmental sustainability. The initiative is also designed to attract private participation by allowing cargo owners to hire vessels operated by entities beyond government agencies. This is expected to benefit shipping companies, freight forwarders, trade bodies and bulk or container cargo operators. Initially valid for three years, the scheme aims to optimise supply chains and enhance the commercial viability of water-based logistics. The IWDC also announced the launch of fixed-day scheduled sailing services on commercially viable stretches, demonstrating the readiness of waterways as an efficient and sustainable mode of cargo transport. Kerala’s development package further includes new river cruise jetties and the induction of a survey vessel to strengthen navigation, tourism and passenger services. The council reviewed major new projects worth over Rs 9 billion, including the development of a slipway facility in Kochi to support timely vessel repair and maintenance. These investments are expected to improve operational efficiency and infrastructure resilience in the state’s inland water transport ecosystem. Cargo movement on national waterways has risen sharply from 18 million tonnes in 2013–14 to 145.84 million tonnes in 2024–25, while the number of operational national waterways has increased from three to 32. Six additional waterways are expected to become operational by 2026. The number of luxury river cruise vessels has grown from five to 25, reflecting rising industry confidence. Operational terminals have increased from 15 to 25, while floating jetties have expanded from 30 to 100. Among Kerala’s five national waterways, three are fully operational, carrying around 3 million tonnes of cargo annually, according to the ministry. The initiatives are expected to strengthen Kerala’s role in India’s inland water transport network, improve logistics efficiency and accelerate the shift towards sustainable transport modes.

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