₹6,833 Cr Investment for Inland Waterways to Boost Infrastructure

The Indian government has allocated ₹6,833.46 crore over five years to enhance infrastructure development along India’s National Waterways, aiming to promote sustainable transport and economic growth. Major allocations include the Jal Marg Vikas Project and the development of NW-2 in Assam. The Inland Waterways Authority of India is constructing 60 community jetties and constructing hybrid electric catamarans. The Government of India has made significant strides in enhancing the country’s inland water transport (IWT) system, investing ₹6,833 crore over the past five years. This substantial investment is part of a broader push to promote eco-friendly, cost-effective, and efficient cargo and passenger transport via the country’s vast network of rivers and waterways.

Infrastructure Development and Modernization

The investment has been channelled into developing National Waterways (NWs) across the country, especially on major river stretches like the Ganga (NW-1), Brahmaputra (NW-2), and Barak (NW-16). Key projects include the Jal Marg Vikas Project (JMVP), which aims to develop NW-1 (Varanasi to Haldia) into a navigable waterway with multimodal terminals, navigation aids, and modern vessels. Other focus areas include upgrading jetties, river ports, and ferry terminals to enhance operational efficiency and ensure year-round navigability. Spearheaded by the Ministry of Ports, Shipping and Waterways, the initiative aims to strengthen multimodal logistics infrastructure and unlock the economic potential of riverine routes. (National Waterway)

Environmental and Economic Advantages

Inland water transport is widely recognized as an eco-friendly alternative to road and rail freight. It emits significantly less greenhouse gas and reduces the logistics cost for bulky cargo like coal, cement, food grains, and steel. The government’s sustained investment aims to shift a portion of national cargo traffic to waterways, thereby easing road congestion and lowering carbon emissions This approach aligns with India’s climate goals and sustainable development objectives outlined under the National Action Plan on Climate Change (NAPCC).

Boost to Regional Connectivity and Trade

Developing inland waterways has also helped enhance interstate and regional trade, especially in the Northeast and Eastern regions. Projects on NW-2 and NW-16 have improved connectivity in Assam, West Bengal, and Tripura, offering an alternate route for movement of goods and people. Moreover, Indo-Bangladesh Protocol routes have received renewed attention, enabling seamless cross-border cargo movement between Indian ports and Bangladesh’s inland transport network. (Jal Marg Vikas Project)

Private Sector Participation and PPP Projects

To further accelerate development, the government is actively promoting Public-Private Partnerships (PPP) in port and terminal operations. Private investments are being invited for cargo handling, vessel operation, and maintenance of terminals under the revised Model Concession Agreement (MCA) guidelines. The policy reform aims to improve service efficiency and attract long-term investment.

Conclusion

The ₹6,833 crore investment in inland waterways is transforming India’s logistics landscape by offering a green, affordable, and efficient transport alternative. With continued policy support and infrastructure upgrades, India’s inland waterways sector is poised to become a vital component of the national multimodal logistics ecosystem, promoting regional growth, environmental sustainability, and global trade competitiveness.