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Charting a New Course Enhancing India's Water Transport Infrastructure

Financial Express Mumbai

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October 27, 2025

On October 27, 1986, Inland Waterways Authority of India (IWAI) was established by an Act of Parliament under the Ministry of Ports, Shipping and Waterways.

IWAI is responsible for developing and regulating the national waterways for shipping and navigation in the country.

India boasts an extensive network of over 20,000 kms of national waterways, with the National Waterways Act, 2016 declaring 111 (including five existing and 106 new) National Waterways (NWs). Of these, 32 are operational and being developed by IWAI.

Initiatives and Key Achievements

Unlike road or rail transport, which often requires extensive land acquisition and heavy construction, inland water transport leverages existing natural resources, offering numerous benefits, including fuel efficiency, lower emissions, and cost savings. This makes it an ideal mode of transportation for bulk cargo such as coal, cement, fertilizers, food grains and automobiles.

In the previous decade, a number of initiatives have been taken to improve the inland water transport sector:

■ The total number of National Waterways in the country has gone up from 5 to 111.

■ The annual budget for development of National Waterways has increased from Rs. 183 crores to Rs. 1,767 crores;

■ The number of multi-modal terminals on National Waterways have increased from one to four;

■ IWAI has developed more than 4,000 kilometers of navigable fairways on National Waterways 1 and 2, as well as the Indo Bangladesh Protocol routes, through comprehensive end-to-end dredging.

The government has made significant strides in revitalizing the inland waterways sector through several key initiatives, including:

Jal Marg Vikas Project (JMVP): A flagship project aimed at developing the 1,390 km long stretch of National Waterway-1 (Ganga River) from Varanasi to Haldia, with the financial and technical assistance of the World Bank. This project includes the development of dedicated terminals at Varanasi, Sahibganj, Kalughat and Haldia to handle large vessels.

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