New Delhi:
The Central government has announced a significant investment of over ₹630 crore to enhance inland waterway infrastructure in Uttar Pradesh. The details were provided by Union Minister of Ports, Shipping and Waterways, Sarbananda Sonowal, in a written reply in the Lok Sabha on 25 July. The projects are part of the government’s larger push to develop sustainable, cost-effective, and eco-friendly transport alternatives under the Jal Marg Vikas Project and the National Waterways Act, 2016.
Out of the ₹630 crore earmarked for the state, projects worth ₹251.55 crore have already been completed. These include the construction of the Varanasi Multimodal Terminal at a cost of ₹182.33 crore, 11 community jetties across Varanasi, Chandauli, Ghazipur and Ballia worth ₹17 crore, and two jetties on the Ghaghara River at Ayodhya costing ₹4 crore. Additionally, the Ministry has deployed two electric catamarans at Varanasi and Ayodhya (₹25.6 crore), and a hydrogen fuel-cell passenger vessel in Varanasi worth ₹22.62 crore.
Ongoing projects valued at ₹380.49 crore include fairway development between Majhauwa and Ghazipur (₹78.64 crore), four steel community jetties in Ballia and Ghazipur (₹7.82 crore), and fairway deepening from Ghazipur to Varanasi (₹102.98 crore). Other developments include six river jetties in Mathura worth ₹12 crore and dredging between Gokul Barrage and Jugal Kishore Ghat costing ₹8.45 crore.
Three major projects in Varanasi have also been approved, a ₹200 crore river cruise terminal, a ₹150 crore Regional Centre of Excellence for inland waterways, and a ₹50 crore ship repair facility. To support these developments, the Inland Waterways Authority of India (IWAI) has acquired 75 acres of land in Chandauli district to develop a freight village adjoining the Varanasi terminal. This is expected to provide essential logistics support to local MSMEs and farmers, decongest road traffic in Varanasi, and create employment in warehousing and cargo handling.
The Ministry noted that the projects are designed to ensure round-the-year navigability of rivers like the Ganga, Ghaghara and Yamuna. Maintenance works include dredging, river training, and channel marking. To promote use of inland waterways, the government has introduced a 35% incentive scheme for cargo owners and extended tonnage tax benefits under the Inland Vessels Act, 2021.
Cargo movement on India’s national waterways has grown significantly from 18 million tonnes in 2013–14 to 133 million tonnes in 2023–24. Passenger movement also saw a surge, reaching 1.61 crore in the same period. The Ministry aims to increase cargo traffic to 200 million tonnes by 2030 and 500 million tonnes by 2047.
The government has also notified the National Waterways (Construction of Jetties/Terminals) Regulations, 2025 to allow greater private participation in terminal infrastructure and simplify entry for private operators. Integration with major ports such as Kolkata is also underway. Multi-modal terminals on National Waterway-1 are being handed over to the Shyama Prasad Mookherjee Port Trust to streamline cargo movement.
Additional initiatives include cargo aggregation hubs and cluster-based logistics parks at Varanasi and Sahibganj. Rail connectivity is being ensured through public sector undertakings for these terminals. The Ministry has also completed pilot runs on Indo–Bangladesh Protocol routes 5 and 6 (Maia–Sultanganj), with regular operations set to begin after regulatory approvals.
The investments reflect the government’s long-term vision to create a green and cost-efficient transportation backbone. With over ₹6,400 crore invested in inland waterways across India since 2014–15, the sector is being positioned as a critical element in the country’s broader logistics and sustainability goals.
