India has a vast system of inland waterways, including backwaters, streams, canals and rivers. Of the 20,236 km of navigable length, 2,256 km is canals and 17,980 km is rivers, both of which are accessible by mechanised craft. The central government has reportedly invested over Rs 60 billion in the past decade for the revival of inland waterways as a viable alternative for cargo movement as well as for improving passenger connectivity.
There has been a substantial increase in cargo movement through national waterways (NWs) over the past few years. The volume of cargo transported through NWs increased at a CAGR of 15.9 per cent between 2019-20 and 2023-24. As per a recent update, NWs handled 94.88 million metric tonnes (mmt) of traffic during April-November 2024-25 as compared to 88.89 mmt in the corresponding period of 2023-24, registering a growth of 6.74 per cent.
Further, of the 111 NWs declared under the National Waterways Act, 2016, 26 NWs have been found feasible based on detailed project reports. NW-1 (Jal Marg Vikas project) has achieved physical progress of 61.79 per cent and financial progress of 61.57 per cent. The major components of NW-1 are the multimodal terminal at Varanasi, Sahibganj and Haldia, the construction of a new navigational lock at Farakka, the modernisation of an old lock gate at Farakka, the Kalughat intermodal terminal, and fairway development. Meanwhile, NW-2 (Brahmaputra River [Dhubri-Sadiya]) achieved physical progress of 79.87 per cent. The other NWs (3, 4, 5, 8, 9, 10, 25, 27, 28, 31, 37, 40, 44, 52, 57, 68, 73, 85, 86, 94, 97, 100 and 111) are at various stages of development.
Recent government initiatives
Numerous efforts are being made to rejuvenate the support system for inland waterways to decongest railways and roadways while providing a viable, economical, sustainable and efficient mode of transportation for both passengers and cargo operators. The Inland Waterways Authority of India (IWAI) is working towards capacity augmentation of NW-1, NW-2, NW-3 and NW-16, among other waterways, by developing inland water transport (IWT) terminals and fairways, including end-to-end dredging contracts, night navigation facilities and navigational locks.
In December 2024, the Ministry of Ports, Shipping and Waterways (MoPSW) launched a new scheme for cargo promotion, Jalvahak, incentivising the movement of long-haul cargo via inland waterways. This scheme is a major step towards promoting sustainable and cost-effective transportation across NW-1 (Ganga river), NW-2 (Brahmaputra river), and NW-16 (Barak river). It provides reimbursement up to 35 per cent of the total operating expenditure incurred while transporting cargo through these NWs via the Indo-Bangladesh Protocol (IBP) routes, over distances exceeding 300 km. Further, it encourages cargo owners to hire vessels owned or operated by organisations other than the IWAI or Inland and Coastal Shipping Limited. The scheme is valid for three years.
To further boost the inland waterways sector, the centre has provided a grant of Rs 17.52 billion to the IWAI in the Union Budget of 2025-26. This is 61.18 per cent higher than the budget estimate of Rs 10.87 billion and 47.23 per cent higher than the revised estimate of Rs 11.9 billion for FY2024-25. Additionally, the central government has announced an investment of Rs 10.1 billion for projects along the Brahmaputra and Barak rivers in Assam. This includes an investment of Rs 966 million for a slipway project in Majuli under the Sagarmala programme. Besides, Rs 4.74 billion has been sanctioned for the comprehensive development of the NW-2 project, which is nearly 80 per cent complete.
On the digital front
The IWAI uses innovative solutions for ease of doing business. The CAR-D (Cargo Data) Portal is an integrated portal that provides cargo and passenger data for all NWs in a single integrated portal. It helps in assisting potential shippers and cargo owners in identifying cargo types and commodities at various waterways, terminals and jetties. Another platform is the Portal for Asset and Navigation Information (PANI), which is an integrated solution bringing river navigation and infrastructure information on a single platform. It provides detailed information on various features of NWs, assets such as fairways and cross-river structures, connectivity at jetties, as well as emergency services for facilitating the transportation of cargo and other infrastructure facilities. These innovative solutions increase collaboration across stakeholders, improve organisational consistency, increase resource agility and improve the management of activities.
Strengthening port connectivity
In collaboration with the Department for Promotion of Industry and Internal Trade and the MoPSW, the Ministry of Road Transport and Highways has prepared a Comprehensive Port Connectivity Plan (CPCP) to guarantee efficient last-mile connectivity to all operational and under-implementation ports. It entails determining the required infrastructure projects and evaluating each port’s connectivity needs. The CPCP has identified over 100 new connectivity infrastructure gaps, of which 33 road and rail projects have been identified to enhance connectivity of ports on the eastern coast.
Currently, 10 projects covering about 313 km have been completed, 26 projects covering about 1,754 km are under implementation, and the bidding process and detailed project reports (DPRs) are in progress for 72 projects, which span 1,631 km. These projects focus on the last-mile and immediate hinterland connectivity of the ports. Once completed, these projects are expected to enhance road connectivity to all operational and under-implementation ports across the country, thus fostering economic growth through the seamless movement of goods.
Additionally, a report on the connectivity of ports to industrial nodes has been prepared by the MoPSW. The report has identified 62 new road and rail infrastructure gaps across all industrial nodes under the National Industrial Corridor Development and Implementation Trust.
Looming challenges
Some of the key hindrances with respect to inland waterways are increased flood risks in downstream areas, frequent changes in river courses, morphological issues, difficulty identifying disposal grounds, changes in water levels and the reduction of flow discharges, increased bank erosion issues and problems in maintaining dredging depths in upstream areas.
Cargo movement on the NWs also suffers from multimodal issues due to a lack of industries along the waterways. In order to resolve this issue, the government has undertaken projects for the development of a hub-freight village at Varanasi and an integrated cluster-cum-logistics park at Sahibganj.
Another important segment in the implementation of the inland waterways project is dredging. However, dredging presents a number of technical challenges, including logistical concerns regarding the transportation of fuel/materials to the dredger, heavy siltation and recurrence of sediments.
The way forward
IWT is positioned as an energy-efficient and economical mode that essentially operates as a multimodal system in combination with other transportation modes. Thus, it has the potential to improve the cost efficiency and sustainability of the logistics ecosystem in the country. India has set a target to reach 200 mmt of cargo movement via waterways by 2030 and 500 mmt by 2047. The MoPSW also intends to increase the modal share of IWT to 5 per cent from the present 2 per cent. Meanwhile, the Inland Waterways Development Council (IWDC) is planning to invest more than Rs 500 billion over the next five years to enhance inland waterways.
Additionally, a series of new initiatives (worth more than Rs 14 billion) across 21 inland waterways has been announced. Meanwhile, a Riverine Community Development Scheme has been proposed at the IWDC to improve the socio-economic well-being of coastal communities by developing infrastructure, promoting trade and tourism, and preserving the riverine ecosystem.
Going forward, the development of necessary infrastructure to enable the movement of cargo and passengers on inland waterways will be crucial for the promotion of the sector. India needs a unified digital platform, one that augments inland waterways infrastructure, supports transparent availability of information and higher stakeholder interaction, as well as enables increased traffic on inland waterways, safe voyages, better communication and enhanced monitoring. Further, advanced and innovative technological solutions are required to bring efficiencies to the entire NW ecosystem and provide appropriate information for decision-making.
Sidra Siddiquie