{"id":72598,"date":"2026-02-01T11:57:45","date_gmt":"2026-02-01T14:57:45","guid":{"rendered":"https:\/\/shipping.einnews.com\/article\/888438007"},"modified":"2026-02-01T11:57:45","modified_gmt":"2026-02-01T14:57:45","slug":"govt-to-make-a-fresh-attempt-to-promote-coastal-shipping-and-inland-waterways","status":"publish","type":"post","link":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/2026\/02\/01\/govt-to-make-a-fresh-attempt-to-promote-coastal-shipping-and-inland-waterways\/","title":{"rendered":"Govt to make a fresh attempt to promote coastal shipping and inland waterways"},"content":{"rendered":"<p> <title>Govt to make a fresh attempt to promote coastal shipping and inland waterways, ETInfra<\/title>                                                                      &lt;!&#8211;  &#8211;&gt; &lt;!&#8211;  &#8211;&gt; <!-- Google Tag Manager --><br \/>\n<!-- analytics_gtm_id to be passed dynamically per portal--> <!-- End Google Tag Manager -->    <\/p>\n<header> <!-- For Accessiblity only --> &lt;!&#8211; <\/p>\n<div id=\"skiptocontent\" aria-label=\"skip content\"> <a href=\"#maincontent\" aria-label=\"skip main content link\">skip to main content<\/a> <\/div>\n<p> &#8211;&gt; <!-- Ads block --> <\/p>\n<section aria-label=\"Top Ads Block\" class=\" top-ads\"> <\/section>\n<p> <!-- Content Header with navigation --> <!-- To be implemented mobile view --> <!-- Mobile Header --> <!-- mobile callout section --> <!-- Top Header InPage Promos --> <\/header>\n<p> <!-- Include layout structure template --> <\/p>\n<div class=\"main-content\"> <main id=\"maincontent\" class=\"layout2\"><\/p>\n<div id=\"news_items_container\">\n<section class=\"container-mid article-section status_prime_article single-post currentlyInViewport inViewPort \" id=\"news_dtl_127842944\" data-article=\"0\" data-href=\"https:\/\/infra.economictimes.indiatimes.com\/news\/ports-shipping\/govt-to-make-a-fresh-attempt-to-promote-coastal-shipping-and-inland-waterways\/127842944\" data-msid=\"127842944\" data-mediaid data-authors=\"[\" data-author-list=\"P Manoj\" data-category-name=\"Ports and Shipping\" data-category_id=\"799\" data-cat_msid=\"84014207\" data-date=\"2026-02-01\" data-index=\"article_1\" data-keywords=\"coastal cargo promotion scheme, union budget 2026 maritime, inland waterways freight india, coastal shipping india policy, logistics cost reduction india, national waterways development, modal shift freight transport, maritime india vision, water based transport india, Budget 2026\" data-type=\"news\">\n<div class=\"article-section__body \">\n<div class>\n<div class=\"article-section__body--top\">\n<div class=\"article-section__body__authors\">\n<div class=\"news-author-container\">\n<div class=\"author-image\"> <img data-opt-id=758893364  fetchpriority=\"high\" decoding=\"async\" src=\"data:image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/ywAAAAAAQABAAACAUwAOw==\" fifu-lazy=\"1\" fifu-data-sizes=\"auto\" fifu-data-srcset=\"https:\/\/infra.economictimes.indiatimes.com\/Themes\/Release\/theme4\/images\/icons\/et-default-user.svg?w=75&resize=75&ssl=1 75w, https:\/\/infra.economictimes.indiatimes.com\/Themes\/Release\/theme4\/images\/icons\/et-default-user.svg?w=100&resize=100&ssl=1 100w, https:\/\/infra.economictimes.indiatimes.com\/Themes\/Release\/theme4\/images\/icons\/et-default-user.svg?w=150&resize=150&ssl=1 150w, https:\/\/infra.economictimes.indiatimes.com\/Themes\/Release\/theme4\/images\/icons\/et-default-user.svg?w=240&resize=240&ssl=1 240w, https:\/\/infra.economictimes.indiatimes.com\/Themes\/Release\/theme4\/images\/icons\/et-default-user.svg?w=320&resize=320&ssl=1 320w, https:\/\/infra.economictimes.indiatimes.com\/Themes\/Release\/theme4\/images\/icons\/et-default-user.svg?w=500&resize=500&ssl=1 500w, https:\/\/infra.economictimes.indiatimes.com\/Themes\/Release\/theme4\/images\/icons\/et-default-user.svg?w=640&resize=640&ssl=1 640w, https:\/\/infra.economictimes.indiatimes.com\/Themes\/Release\/theme4\/images\/icons\/et-default-user.svg?w=800&resize=800&ssl=1 800w, https:\/\/infra.economictimes.indiatimes.com\/Themes\/Release\/theme4\/images\/icons\/et-default-user.svg?w=1024&resize=1024&ssl=1 1024w, https:\/\/infra.economictimes.indiatimes.com\/Themes\/Release\/theme4\/images\/icons\/et-default-user.svg?w=1280&resize=1280&ssl=1 1280w, https:\/\/infra.economictimes.indiatimes.com\/Themes\/Release\/theme4\/images\/icons\/et-default-user.svg?w=1600&resize=1600&ssl=1 1600w\" loading=\"eager\" width=\"40\" height=\"40\" class=\"unveil check-user-initials user-init-cat\" fifu-data-src=\"https:\/\/infra.economictimes.indiatimes.com\/Themes\/Release\/theme4\/images\/icons\/et-default-user.svg\" data-src=\"https:\/\/etimg.etb2bimg.com\/authorthumb\/479257403.cms?width=250&height=250&imgsize=12738\" alt=\"P Manoj\"> <\/div>\n<div class=\"author-section\">\n<ul>\n<li>Published On Feb 1, 2026 at 07:35 PM IST<\/li>\n<\/ul><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div class=\"article-section__body__news\"> <!-- Display video article in news article for the custom next story --> <!-- Modifying the body placing embeds,promoslots,related etc.--> <b><\/p>\n<figure class=\"img_container\">&lt;img width=&quot;590&quot; height=&quot;442&quot; class=&quot;unveil&quot; loading=&quot;eager&quot; src=&quot;https:\/\/infra.economictimes.indiatimes.com\/images\/default.jpg&quot; data-src=&quot;https:\/\/etimg.etb2bimg.com\/photo\/127842975.cms&quot; captionrendered=&quot;1&quot; alt=&quot;<\/p>\n<p>This is the second attempt by the government in the last three years to promote coastal and inland waterway transportation which are considered energy efficient, eco-friendly and helps reduces logistics costs for domestic freight.<\/p>\n<p>&#8220;&gt;<figcaption class=\"caption\"><span>This is the second attempt by the government in the last three years to promote coastal and inland waterway transportation which are considered energy efficient, eco-friendly and helps reduces logistics costs for domestic freight.<\/span><\/figcaption><\/figure>\n<p>MUMBAI:<\/b> The government will launch a <a id=\"32691729\" class=\"news-keywords\" href=\"https:\/\/infra.economictimes.indiatimes.com\/tag\/coastal+cargo+promotion+scheme\">Coastal Cargo Promotion Scheme<\/a> for incentivising a modal shift from rail and road, to increase the share of inland waterways and coastal shipping from 6 per cent to 12 per cent by 2047, Finance Minister Nirmala Sitharaman said in her budget speech.<\/p>\n<p><!-- PROMOSLOT_M -->The FM said that the government will operationalise 20 new National Waterways (NW) over the next 5 years, starting with NW-5 in Odisha to connect mineral rich areas of Talcher and Angul and industrial centres like Kalinga Nagar to the ports of Paradip and Dhamra.<\/p>\n<p>This is the second attempt by the government in the last three years to promote coastal and inland waterway transportation which are considered energy efficient, eco-friendly and helps reduces logistics costs for domestic freight.<\/p>\n<p><!-- PROMOSLOT_M -->In the 2023 Budget, Sitharaman had said that coastal shipping will be promoted as an energy efficient and lower cost mode of transport, both for passengers and freight, through PPP mode with viability gap funding.<\/p>\n<p>But the plan didn\u2019t take off.<\/p>\n<p>India\u2019s long and contiguous coastline spanning 11,098.81 kms and extensive navigable inland waterways offers an excellent opportunity to tap an environmentally friendly water based modal transport, which can complement rail and road-based cargo movement.<\/p>\n<p>Currently, coastal, and inland waterways contribute only about 6 percent of the country\u2019s freight modal mix, while adjacent developing economies, such as Bangladesh (16 percent) and Thailand (12 percent) have a higher share of water-based transport, highlighting the scope for improvement in India.<\/p>\n<p>\u201cDespite significantly lower costs, water transport accounts for about 6 percent of total freight movement in India in ton km terms,\u201d according to the <a id=\"10681027\" class=\"news-keywords\" href=\"https:\/\/infra.economictimes.indiatimes.com\/tag\/maritime+india+vision\">Maritime India Vision<\/a> 2030, a ten-year blueprint for India\u2019s maritime sector. \u201cIndustrial development has not fully utilized the structural advantages of efficient supply chains leveraging proximity to coast,\u201d it said.<\/p>\n<p>Shipping industry sources said that deploying ships exclusively for coastal trade will not be viable due to lack of dedicated volumes\/committed capacity compared to the more margin export-import trade (EXIM) trade.<\/p>\n<p>\u201cYou will have to make it viable for the operator; all the operators wanted cargo guarantee from government departments which they were not willing to give,\u201d said an industry source, explaining why the effort failed previously.<\/p>\n<p><!-- PROMOSLOT_M -->Compared to coastal shipping, inland water transport has fared better.<\/p>\n<p>Cargo movement on inland waterways grew from 18.1 million tonnes (MT) in FY 2013\u201314 to 145.5 MT in FY 2024\u201325, posting a 700 per cent growth with a CAGR of about 21 per cent.<\/p>\n<p><!-- PROMOSLOT -->Inland waterways now carry coal, iron ore, sand, and fly ash (68 per cent of cargo), reducing road\/rail congestion and logistics costs.<\/p>\n<p>To further support inland water transport, in the 2025 Budget, Sitharaman brought inland vessels under the tonnage tax scheme, a levy based on the cargo carrying capacity of ships, compared to the corporate tax regime, which reduces the tax outgo for vessel operators.<\/p>\n<p>A ship repair ecosystem catering to inland waterways will also be set up at Varanasi and Patna, Sitharaman said on Sunday.<\/p>\n<p>The modal shift of cargo using coastal shipping is one of the four focus areas identified by the government to improve logistics efficiency and cost competitiveness for maritime logistics.<\/p>\n<p><!-- PROMOSLOT -->Improvement of water-based transport share would lead to lowering of logistics costs for end-user industries as water-based transport is inherently cheaper than rail and road modes.<\/p>\n<p>It offers other indirect economic benefits such as reduced air and noise pollution and reduced rate of accidents.<\/p>\n<p>However, development of water-based transport would require development of effective multimodal solutions as first mile\/last mile connectivity, lead times and costs become important factors for ensuring a shift from door-to-door services provided by road and rail-road modes.<\/p>\n<p>Thus, an integrated approach to development is required to design the most cost-effective and hassle-free logistics solutions for end-user industries.<\/p>\n<p>Ministry of Ports, Shipping and Waterways has undertaken several initiatives in the last few years to facilitate coastal shipping such as incentivizing construction of dedicated coastal berths, reducing port tariffs for coastal cargo, provisioning green-channel clearance of coastal cargo, prioritizing berthing of coastal vessels and relaxation of cabotage rules for increasing vessel availability. These measures have led to a double-digit growth in coastal shipping movement.<\/p>\n<p>However, the vast potential for coastal shipping is yet to be fully realised, and a more focused approach is required to realize this potential, the <a href=\"https:\/\/infra.economictimes.indiatimes.com\/tag\/maritime+india+vision\">Maritime India Vision<\/a> 2020 added.<\/p>\n<p> <!-- Category Most Read Placement --> <\/p>\n<div class=\"bottom-author-detail-tag\">\n<div class=\"bottom-author-detail\">\n<ul class=\"article-publish-date\"> &lt;!&#8211; <\/p>\n<li> Updated On Feb 1, 2026 at 07:35 PM IST<\/li>\n<p> &#8211;&gt; <\/p>\n<li>Published On Feb 1, 2026 at 07:35 PM IST<\/li>\n<p> &lt;!&#8211; <\/p>\n<li class=\"desktop-view\">4 min read<\/li>\n<p> &#8211;&gt; <\/ul>\n<\/p><\/div>\n<\/p><\/div>\n<p> <!-- Comment Section --> <!-- Comment Section --> <\/p>\n<div class=\"subscription-in-article\">\n<div aria-label=\"Top Newsletter Subscription Section\" class=\"top-newsletter-subs\">\n<div 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fifu-data-src=\"https:\/\/mlmjbqro95r8.i.optimole.com\/cb:bOxR.6a5\/w:auto\/h:auto\/q:mauto\/f:best\/https:\/\/i1.wp.com\/st.etb2bimg.com\/Themes\/Release\/theme4\/images\/bar-codes\/infra_barcode.png?mod=3129&ssl=1\" alt> &lt;!&#8211; <span class=\"border-bottom\"><\/span> &#8211;&gt; <\/figure>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/section>\n<p> <span id=\"etb2b-news-detail-page\" class=\"etb2b-module-ETB2BNewsDetailPage\" data-news-id=\"127842944\" data-news_link=\"https:\/\/infra.economictimes.indiatimes.com\/news\/ports-shipping\/govt-to-make-a-fresh-attempt-to-promote-coastal-shipping-and-inland-waterways\/127842944\"> <\/span> <!-- Next Story Placement --> &lt;!&#8211; <\/section>\n<p> &#8211;&gt;\n<\/p><\/div>\n<p><\/main> <!-- Footer Section -->  <!-- OneTrust Cookies Consent Notice start for auto.economictimes.indiatimes.com --> <!-- OneTrust Cookies Consent Notice end for auto.economictimes.indiatimes.com --> <\/div>\n<p>  &lt;!&#8211; &quot;logo&quot;: &quot;&#8221;, &#8211;&gt;<\/p>\n<p><strong><a href=\"https:\/\/blockads.fivefilters.org\"> <\/a><\/strong> <a href=\"https:\/\/blockads.fivefilters.org\/acceptable.html\"> <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8230; domestic <span class=\"match\">freight<\/span>. In the 2023 Budget, Sitharaman had said that coastal <span class=\"match\">shipping<\/span> &#8230; transport, both for passengers and <span class=\"match\">freight<\/span>, through PPP mode with viability &#8230; . The modal shift of <span class=\"match\">cargo<\/span> using coastal <span class=\"match\">shipping<\/span> is one of the &#8230;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[],"class_list":["post-72598","post","type-post","status-publish","format-standard","hentry","category-news","wpcat-1-id"],"_links":{"self":[{"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/posts\/72598","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/comments?post=72598"}],"version-history":[{"count":0,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/posts\/72598\/revisions"}],"wp:attachment":[{"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/media?parent=72598"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/categories?post=72598"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/tags?post=72598"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}