·PIB·15 marks·250–350 words

Discuss the potential of inland waterways for India's mineral-rich eastern states, with reference to National Waterway-5.

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In this answer
  1. Potential
  2. Constraints
  3. Way forward

The eastern states have some of India's biggest coal, iron-ore and steel clusters, but these sit far inland from the coast. National Waterway-5 (NW-5) was declared in 2008 and runs about 588 km across the Brahmani–Mahanadi delta, the Matai River and the East Coast Canal [1]. It shows both how much waterways could do for this region and what holds them back.

Potential

  • Mine-to-port link: NW-5 is planned to connect the Talcher–Angul coal belt and the Kalinganagar steel hub with Paradip and Dhamra ports [2]. The mines and the ports both sit on the water, so this is the kind of route where water can beat road and rail.
  • Cheaper, greener haulage: One litre of fuel moves 215 tonne-km by inland water, 95 by rail and 24 by road. Cost per tonne-km is about ₹1.06 by water, ₹1.36 by rail and ₹2.50 by road [3]. This suits bulk goods like coal and ore that can tolerate slow transit.
  • Less pressure on rail: Moving coal by water frees rail capacity on crowded mineral routes. It also helps the national target of raising the coastal and inland waterway share of freight from 6% to 12% by 2047 [4].
  • Cooperative federalism: NW-5 is to be built through an SPV of IWAI, Coal India, Paradip Port and Odisha, at a cost of over ₹13,000 crore [1][4].
  • Regional spread: The Jalvahak scheme already pays incentives for cargo on NW-1 and NW-2, which serve the eastern states [5].

Constraints

  • Depth: Barges need a least available depth of about 2 m to run profitably [6]. Delta rivers that depend on the monsoon need dredging every year.
  • Concentration: Inland water carries only about 2% of India's freight, and five waterways handle 80% of all waterway cargo [7].
  • First and last mile: Extra loading and unloading can wipe out the long-haul saving [3].
  • Ecology: Dredging puts pressure on estuaries. IWAI has carried out modelling studies for the Brahmani delta [1].

Way forward

  • Develop the deep stretches first and publish the yearly dredging cost along with the building cost.
  • Combine incentives with terminal upgrades and road and rail links under PM Gati Shakti [7].

NW-5 is not a replacement for rail. It is a corridor-specific tool for bulk minerals. If depth, terminals and ecology are managed together, it can lower logistics costs and emissions in the east. That would support SDG 9 (infrastructure) and SDG 13 (climate action) and turn the region's mineral wealth into competitive, low-carbon growth.

Sources

  1. 1Inland Waterways Authority of India – National Waterway-5NW-5 declared in 2008, length about 588 km, route, SPV partners, Brahmani delta modelling studies
  2. 2PIB – A Ride through the Inland Waterways of India (Apr 2026)NW-5 to link Talcher/Angul and Kalinganagar with Paradip and Dhamra
  3. 3NITI Aayog – Improving Rail Efficiency and Share in India's Freight Transport (RITES data)fuel efficiency and cost per tonne-km by mode; first- and last-mile handling costs
  4. 4PIB – MoPSW Consultative Committee meeting, Puri (Nov 2026)6%→12% freight-share target by 2047; NW-5 cost above ₹13,000 crore
  5. 5PIB – Govt Unveils 'Jalvahak' to Boost Inland Waterwayscargo incentives on NW-1, NW-2 and NW-16
  6. 6Standing Committee Report on the National Waterways Bill, 2015 (PRS)2 m least available depth needed for profitable operation
  7. 7PRS – Standing Committee Report Summary: Development and Expansion of National Inland Waterways (2023)about 2% freight share; 5 waterways carry 80% of cargo; connectivity to ports, rail and road

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