UP Secures ₹6,000-Cr Boost as IWAI Unveils Major Inland Waterways Expansion

IWAI confirmed an immediate investment boost of ₹1,350 crore dedicated to inland water transport expansion and river cruise infrastructure in Uttar Pradesh.

The Inland Waterways Authority of India (IWAI)—the nodal body under the Ministry of Ports, Shipping & Waterways (MoPSW)—announced a landmark set of investments aimed at transforming Uttar Pradesh into a major inland waterways and river tourism hub. The announcements were made during India Maritime Week 2025 (IMW), where IWAI signed MoUs exceeding ₹6,000 crore to accelerate development along National Waterway-1 (Ganga).

The agreements, spanning cruise tourism, ship repair facilities, multimodal transport, and green mobility, signal the largest-ever investment commitment for inland water transport (IWT) in Uttar Pradesh. These MoUs align with India’s vision of building world-class river systems and leveraging waterways as engines of economic growth.

Massive Investment Push for Uttar Pradesh: ₹1,350 Crore for IWT & Cruise Development

IWAI confirmed an immediate investment boost of ₹1,350 crore dedicated to inland water transport expansion and river cruise infrastructure in Uttar Pradesh. This follows the signing of multiple MoUs targeting the Varanasi region and the larger Ganga corridor.

Varanasi—already emerging as a national river tourism hotspot—will see major operational expansion, new cruise terminals, and enhanced ship-building capacity, solidifying its position as a gateway for cultural and luxury river tourism.

Strengthening River Cruise Tourism: Over ₹800 Crore Allocated

River cruise tourism received a significant impetus with the signing of MoUs between IWAI and two leading operators:

• Heritage River Journeys Pvt. Ltd.: To develop and induct modern cruise vessels and expand tourism circuits along NW-1.

• Alaknanda Cruises: To operate premium cruise services centered around Varanasi, enhancing spiritual, cultural, and heritage-based river tourism.

Together, these projects represent commitments of more than ₹800 crore, aimed at making the Ganga one of Asia’s most attractive river cruise destinations.

These initiatives are expected to:

• Increase tourist footfall in Varanasi

• Create local employment in hospitality, vessel operations, and tourism services

• Boost India’s global visibility in luxury river cruising

Varanasi to Become a Maritime Services Hub: ₹350 Crore Ship Repair Facility

In a major infrastructural upgrade, IWAI signed an MoU with the Government of Uttar Pradesh to establish a state-of-the-art ship repair facility in Varanasi. With an investment of ₹350 crore, this new facility will:

• Provide maintenance and repair for vessels operating along NW-1

• Reduce dependence on distant coastal shipyards

• Strengthen Varanasi’s maritime industrial capabilities

Two additional river cruise terminals worth ₹200 crore will be constructed in Varanasi, improving passenger handling capacity and enabling seamless cruise operations.

Green Push: ₹100 Crore for Electric Vessel Charging Infrastructure

Uttar Pradesh will also see the rollout of electric vessel charging stations, part of India’s broader National Green Shipping Mission. The ₹100 crore MoU will enable the state to adopt low-emission river mobility solutions, paving the way for:

• Cleaner inland water transport

• Reduced operational costs

• A shift toward electric and hybrid river vessels

This aligns with India’s goal of making inland waterways a central component of sustainable transportation.

India’s Maritime Vision 2047: Transformational Policies Driving Growth

Union Minister Sarbananda Sonowal underscored that the MoUs reflect the transformational policies implemented since 2014 under the leadership of Prime Minister Narendra Modi.

“These MoUs demonstrate how inland waterways are emerging as engines of growth, tourism and regional integration,” Sonowal said. He emphasized that the agreements support India’s long-term vision of becoming a global maritime hub by 2047.

New Regional Centre of Excellence (RCoE): ₹200 Crore for Skills & Innovation

To build a highly skilled workforce and promote innovation in river-based transport, IWAI announced a ₹200 crore Regional Centre of Excellence (RCoE) in Varanasi. The centre will focus on:

• Training manpower for inland water transport

• Research in vessel design and river engineering

• Development of green technologies

• Innovation in logistics and navigation

This facility is expected to position Varanasi as a leading knowledge and training hub for the inland waterways sector.

Heavyweight Investment in Modern Tug-Barges: ₹1,000 Crore MoU with Rhenus Logistics

A major investment agreement worth ₹1,000 crore was signed with Rhenus Logistics, enabling:

• Deployment of advanced tug-barge fleets on the Ganga and Brahmaputra

• Boosted cargo capacity

• Reduced logistics costs across eastern and northeastern India

• Enhanced multimodal cargo movement

This is seen as a pivotal step toward shifting freight from road to waterways, in line with global sustainable transport practices.

Dredging, Connectivity & Gati Shakti Integration: ₹1,500 Crore Each

Two more major MoUs were finalized:

1. IWAI & NTCPWC, IIT Madras — ₹1,500 crore for dredging and supervision on NW-1

2. IWAI & IPRCL — ₹1,500 crore for developing rail connectivity for multimodal terminals at:

   • Varanasi

   • Sahibganj

   • Haldia

These initiatives directly support the PM Gati Shakti National Master Plan, ensuring seamless integration across rail, road, and waterways.

Leadership Speaks: Vision for a Future-Ready Waterways Network

Shantanu Thakur, MoS MoPSW

He highlighted that the partnerships will help Uttar Pradesh build:

• Strong electric vessel infrastructure

• Modern ship repair capabilities

• Future-ready training and skill ecosystems

Thakur credited PM Modi's vision for turning long-pending ideas into reality, establishing the Ganga as a powerful corridor for connectivity, trade, and tourism.

Vijay Kumar, Secretary MoPSW

He emphasized that the agreements support India’s shift toward a resilient, sustainable maritime economy driven by innovation and infrastructure development.

Sunil Kumar Singh, Chairman (I/C), IWAI

He stated that the MoUs would accelerate Uttar Pradesh’s emergence as a major inland water transport hub, ensuring seamless connectivity and sustainable logistics across the state.

Uttar Pradesh’s Expanding Role in India’s Maritime Future

With the new MoUs strengthening NW-1 operations and expanding infrastructure, Uttar Pradesh is poised to become a cornerstone of India’s inland waterways transformation. The developments complement major national programs including:

• Sagarmala

• Maritime India Vision 2030 (MIV2030)

• Maritime Amrit Kaal Vision 2047 (MAKV2047)

Together, these initiatives mark a decisive step toward making inland waterways a major contributor to India’s economic growth, tourism potential, and green mobility footprint.