India plans ₹10,000cr waterway network to boost logistics
What's the story
India is gearing up to expand its inland waterways network with a massive investment of over ₹10,000 crore, as per a Mint report. The move comes after a significant increase in cargo traffic on these routes, which has grown nearly eightfold in the last decade. Over the next 5 to 10 years, the government plans to develop more than a dozen new national waterways (NWs).
Vision 2047
Expansion part of Maritime Amrit Kaal Vision 2047
The expansion of the operational waterways network is part of the Maritime Amrit Kaal Vision 2047. The goal is to have over 50 national waterways for cargo and passenger traffic well before the deadline.
The government has also identified 19 more waterways, mainly for cruise tourism and passenger ferry operations.
Some of these could later be upgraded for cargo movement, according to the report.
Cargo growth
Cargo movement on national waterways has increased significantly
Cargo movement on national waterways has increased nearly eightfold from 29 million tons in 2014-15 to 218 million tons in 2025-26.
This translates to a compound annual growth rate of 20.13%, exceeding the government's target of reaching 200 million tons by 2030.
The next phase of the project will focus on making commercially viable corridors work end-to-end, rather than just declaring new waterways.
Waterway network
111 inland waterways have been declared as national waterways
Under the National Waterways Act, 2016, 111 inland waterways have been declared as national waterways over a length of about 20,187km across 23 states and four Union territories.
Of these, 32 waterways covering a navigable length of 5,155km are already operational for cargo and passenger movement.
The government is now looking to develop these routes into comprehensive economic corridors linking industrial clusters with freight terminals, ports, roads and railways.
Project success
Connectivity is key to success of projects
Sanjay Kumar Sinha, founder and MD of Chaitanya Projects Consultancy, stressed that connectivity is key to the success of these projects.
He said waterways will deliver their full value only if they're planned alongside the road and highway network.
The government has also started work on supporting infrastructure, with a ship repair facility nearing completion at Pandu in Assam and facilities planned at Varanasi and Patna.
Incentive scheme
Jalvahak scheme offers incentives for shifting freight to inland waterways
The Jalvahak scheme, launched in December 2024, offers cargo owners incentives of up to 35% of actual operating expenditure for shifting freight to inland waterways.
Experts have warned against developing all 111 waterways simultaneously, suggesting instead to identify and scale commercially viable corridors.
Private investment is likely to remain selective as seasonal water flow, siltation and navigation constraints will determine which rivers can become viable freight channels.