Inland Waterways

The Union Budget 2026–27 has announced the operationalisation of 20 new National Waterways and launched a Coastal Cargo Promotion Scheme to boost inland water transport and coastal shipping.

About Inland Waterways
Inland waterways are navigable water channels such as rivers, canals, lakes, lagoons, and estuaries within a country. These waterways support vessels (typically carrying at least 50 tonnes) and are used for commercial navigation. They may be naturally navigable or developed through infrastructure like canals.

Key Policy Announcements

• Expansion of inland waterways to increase their share in cargo transport from 6% to 12% by 2047.
• Operationalisation of National Waterway-5 in Odisha to connect mineral-rich regions like Talcher and Angul with industrial hubs such as Kalinga Nagar and ports like Paradip and Dhamra.
• Establishment of Regional Centres of Excellence along NW-5 for skill development.
• Development of a ship repair ecosystem in Varanasi and Patna.

Legal and Institutional Framework
The National Waterways Act, 2016 declared 111 waterways as National Waterways, covering about 20,187 km across India. As of March 2026, 32 waterways (about 5,155 km) are operational.

Economic and Environmental Significance
Inland Water Transport (IWT) is cost-effective as it uses natural routes and requires less infrastructure. According to the International Labour Organization, it is also more energy-efficient—using 3–6 times less energy than road transport and up to 2 times less than rail. A single vessel of 2,000 tonnes capacity can replace around 125 trucks, reducing congestion, fuel consumption, and emissions.

Targets and Vision
India aims to increase IWT modal share from 2% to 5% and expand cargo volumes to over 200 MMT by 2030 and 500 MMT by 2047 under the Maritime Amrit Kaal Vision. Integration with highways, ports, and industrial corridors is also being prioritised to reduce logistics costs.

Concerns / Challenges
Key challenges include seasonal water flow variations, siltation, limited last-mile connectivity, environmental concerns related to dredging, and the need for adequate infrastructure and skilled manpower. Ensuring ecological sustainability while expanding waterways will be crucial for long-term success.

Source: PIB