MoU Signed for Development of National Waterways in Odisha
Rs 12,200 Crore Project to Boost Green Logistics and Regional Economic Growth
Bhubaneswar : A landmark Memorandum of Understanding (MoU) was signed during India Maritime 2025, held at NESCO Ground in Mumbai, among the Inland Waterways Authority of India (IWAI), Government of Odisha, Paradip Port Authority (PPA), and Mahanadi Coalfields Limited (MCL) for the development and operationalisation of National Waterways–5 (NW–5) and National Waterways–64 (NW–64). The agreement represents a major step towards transforming Odisha’s riverine transport network into a sustainable and efficient freight corridor.
The ambitious project, with an estimated investment of Rs 12,200 crore, aims to enable seamless transportation of coal and other bulk commodities from Talcher coalfields to Paradip and Dhamra ports through inland waterways. By providing an eco-friendly alternative to traditional rail and road logistics, the initiative is expected to reduce transportation costs, ease congestion on existing transport networks, and significantly cut carbon emissions. This effort aligns with the Government of India’s long-term vision of Viksit Bharat @2047, which emphasizes sustainable and inclusive infrastructure development.
Under the MoU, the project will be implemented through a Special Purpose Vehicle (SPV) named Inland Waterways Consortium of Odisha Limited (IWCOL). IWAI will lead the preparation of detailed project proposals, secure statutory and environmental clearances, and oversee the construction of essential infrastructure such as terminals, barrages, and navigation systems along the waterways. The Government of Odisha will play a key facilitating role by providing encumbrance-free land, expediting approvals, and extending administrative support to ensure timely implementation.
Mahanadi Coalfields Limited (MCL), one of Coal India’s leading subsidiaries, will serve as a key cargo partner, ensuring consistent coal movement and providing first-mile connectivity from the mines to the waterway terminals. Paradip Port Authority, on the other hand, will facilitate cargo handling at the port end and promote a modal shift towards inland water transport, thereby strengthening port-linked logistics efficiency.
The MoU was signed in the presence of Union Minister for Parliamentary Affairs and Minority Affairs Kiren Rijiju and Union Minister of State for Ports, Shipping and Waterways Shantanu Thakur. On behalf of the Government of Odisha, the agreement was signed by Ms. Usha Padhee, Principal Secretary of the Commerce and Transport Department. Senior officials from IWAI, PPA, and MCL were also present during the signing ceremony.
Officials highlighted that the development of NW–5 and NW–64 will play a transformative role in improving multimodal connectivity in eastern India. Once operational, the waterways are expected to handle millions of tonnes of coal, minerals, and industrial cargo annually, boosting trade efficiency and industrial output in Odisha and neighboring states. The project will also open up new avenues for local employment and entrepreneurship in logistics, warehousing, and port services.
Experts believe that inland water transport offers a cost-effective and environmentally sustainable solution for India’s growing freight demand. Compared to road transport, waterway logistics consume nearly one-third the fuel and emit significantly lower greenhouse gases. With Odisha’s dense network of rivers such as Mahanadi and Brahmani, the state is strategically positioned to become a hub for waterborne trade and industrial logistics.
This collaborative venture among central and state authorities and major public sector enterprises underscores the government’s emphasis on integrated and sustainable infrastructure. The successful implementation of this project will not only strengthen Odisha’s logistics ecosystem but also contribute to India’s broader mission of achieving economic growth through clean and efficient transport solutions.
