41 mt of coal to be transported through inland waterways in FY24

Subject: Geography

Section :Economic geography

Context:

The Ministry of Ports, Shipping, and Waterways (MoPSW) in India is aiming to increase coal supplies through the inland waterways network.

Details:

They are looking to transport 41.06 million tonnes of coal in the current fiscal year, a 17% increase from the previous year.
Coal transportation through waterways has seen significant growth, with a compounded annual growth rate of 16.71% since 2019.
Currently, only five out of over 400 river networks in India have been developed into National Waterways, but a study conducted by the Ports Ministry has identified 111 river systems that could be developed into National Waterways, with 26 of them being navigable.
The focus is currently on the development of National Waterways 5 along the Brahmani-Mahanadi route.

Coal production and consumption:

India is among the top five coal-producing countries in the world.
Despite being a major producer, India also imports coal to meet some of its demands.
India is a significant consumer of coal, which is used for power generation and industrial processes.

Key terminologies

Coking coal: a type of coal that is used in the production of steel.
Anthracite: a hard and compact type of coal that has a high carbon content.
Pulverised coal injection (PCI coal): a method of injecting pulverized coal into a blast furnace to improve the efficiency of the iron-making process.
Met coke: a type of coke made by heating coal in the absence of air, which is used as a fuel in blast furnaces to produce iron.
Pet coke: a carbon-rich solid material that is derived from oil refining. It is used as a fuel in industrial processes.

Water transport:

Waterways are the cheapest means of transport and are most suitable for carrying heavy and bulky materials having low specific costs.
Water transport is a fuel-efficient and environmentally friendly mode of transportation which has vast employment generation potential.
The main drawback is that it takes longer time than roads and railways to deliver a product.
Currently, coastal and inland waterways contribute 6% of the country’s freight modal mix, while adjacent developing economies, such as Bangladesh (16%) and Thailand (12%) have a higher share of water-based transport, highlighting the scope for improvement for India.

Inland Water Transport in India:

India has over 5,000 km of navigable inland waterways under development.
It has lower operating costs (30% lower than the railways and 60% lower than road) and a sustainable mode of freight logistics and passenger transport
To harness the potential of IWT, the Inland Waterways Authority of India (IWAI) was established in 1986.
The Government has identified a few important Waterways, which are given the status of National Waterways
From only five waterways recognised as National Waterways (NWs), the government of India notified 106 additional waterways as National Waterways, by the National Waterways Act, of 2016.
The major waterways identified in India, are as in the table below: