Odisha to pioneer sustainable river transport under India Maritime Vision 2025
The Odisha government has signed a Memorandum of Understanding (MoU) for the development and operation of National Waterway-5 (NW-5) and National Waterway-64 (NW-64), paving the way for green, cost-effective freight movement across the state.
The agreement was inked on Tuesday during the India Maritime-2025 event in Mumbai among the Inland Waterways Authority of India (IWAI), the Odisha government, the Paradip Port Authority (PPA), and Mahanadi Coalfields Ltd (MCL). With an estimated investment of ₹12,200 crore, the project aims to facilitate seamless transportation of coal and other bulk cargo from Talcher coalfields to Paradip and Dhamra ports through a riverine network. Officials said the move will significantly reduce logistics costs, decongest road and rail networks, and promote eco-friendly freight movement.
Odisha’s rivers for growth
The project marks a critical step in harnessing Odisha’s river systems for sustainable transport and regional development. The NW-5, declared a national waterway in 2008, spans nearly 588 km, running through Odisha and parts of West Bengal. It connects the Talcher–Dhamra stretch of the Brahmani River, the Matai River, the East Coast Canal, and the Mahanadi delta.
The NW-64 covers the Mahanadi stretch from Paradip to Cuttack, a route expected to serve both industrial and passenger traffic once fully operational. According to IWAI, the two waterways are part of India’s broader vision under the National Waterways Act, 2016, which aims to develop viable stretches for commercial navigation and ease cargo movement from the country’s mineral-rich interiors to ports.
SPV to oversee project execution
The project will be implemented through a Special Purpose Vehicle (SPV)—the Inland Waterways Consortium of Odisha Ltd (IWCOL) with IWAI taking the lead in preparing project proposals, obtaining statutory clearances, and developing terminals, barrages, and navigation systems. The SPV will ensure inter-departmental coordination, funding, and timely execution, while also inviting private players through Public-Private Partnership (PPP) models.
Economic and environmental impact
Officials and experts believe the initiative could transform Odisha’s logistics landscape. Bulk industries in Talcher, Angul, and Kalinganagar are expected to gain from the reduced cost of transporting coal, steel, and other commodities to ports.
Waterborne transport is significantly more fuel-efficient and less carbon-intensive than road or rail. This shift will help cut emissions, align with India’s net-zero goals, and support the Maritime India Vision 2030, which seeks to expand the country’s inland waterways network and enhance port-led economic growth. The project is also expected to create thousands of jobs in construction, dredging, vessel operations, and logistics, while boosting small-scale industries along the riverbanks.
Challenges ahead
However, experts caution that implementation may face challenges. While NW-5 was declared over 15 years ago, progress has been delayed due to viability concerns, environmental clearances, and land-acquisition hurdles. Certain stretches of NW-64 are yet to be proven commercially viable. Authorities emphasised that robust environmental safeguards will be put in place to protect the Mahanadi ecosystem, fisheries, and local livelihoods. Regular dredging and channel maintenance will be required to ensure navigability across seasons.
The MoU comes amid Odisha’s larger maritime infrastructure drive the state recently announced ₹50,000 crore in maritime investments and set a target of achieving 500 million tonnes of port capacity by 2047. Officials said the development of these waterways will serve as a backbone for the state’s industrial corridor, connecting coal belts, steel plants, and ports, and positioning Odisha as a leading logistics hub in eastern India.