The long-pending plan to develop Odisha’s inland waterways has gained momentum with the Inland Waterways Authority of India (IWAI) partnering with the state government, Paradip Port Authority (PPA) and Mahanadi Coalfields Limited (MCL) for the operationalisation of National Waterway-5 (NW-5) and National Waterway-64 (NW-64).

An MoU to this effect was signed recently during the India Maritime Week 2025 in Mumbai. The collaboration aims to harness the state’s river network for sustainable freight movement and regional economic growth, with an estimated investment of Rs 122 billion.

The initiative will facilitate seamless transportation of coal and bulk cargo from the Talcher coalfields to Paradip and Dhamra ports through an integrated inland waterway system.

Announced in 2008, the 588 km-long NW-5 — connecting the Mahanadi, Brahmani Delta, Matai River and East Coast Canal to industrial hubs in Kalinganagar and Talcher — had faced delays due to viability issues. The revived plan will begin with a 332 km stretch linking Paradip, Dhamra and Talcher, comprising 237 km from Talcher to Mangalgadi and 95 km from Dhamra to Paradip.

Similarly, NW-64 spans 425 km along the Mahanadi from Paradip sea mouth to Sambalpur barrage. In the first phase, a 98 km section between Paradip Port and Cuttack barrage — including 75 km of the Luna River — will be developed.

The project will be implemented through a Special Purpose Vehicle (SPV), Inland Waterways Consortium of Odisha Ltd (IWCOL). IWAI will lead project preparation, obtain statutory clearances, and develop critical infrastructure such as terminals, barrages and navigation systems.

Under the agreement, the state government will provide encumbrance-free land, facilitate clearances and extend administrative support. MCL will ensure assured cargo movement and first-mile connectivity, while PPA will promote cargo handling and encourage a shift towards inland water transport.