India Unlocks Waterways for Private Investment
WATER & WASTE

India Unlocks Waterways for Private Investment

In a strategic move to modernise and expand the inland water transport sector, the Indian government has introduced the National Waterways (Construction of Jetties/Terminals) Regulations, 2025. Formulated by IWAI under the Ministry of Ports, Shipping and Waterways (MoPSW), these regulations facilitate private, public, and joint venture participation in the construction and operation of jetties and terminals along national waterways.

By opening up this critical sector to private players, the regulations aim to reduce logistical bottlenecks, improve cargo handling efficiency, and lower transportation costs. This initiative is set to drive significant economic benefits, reinforcing India's commitment to sustainable transport and multimodal logistics.

Regulatory Framework and Compliance The new regulations mandate that any entity seeking to develop an inland waterway terminal must obtain a ‘No Objection Certificate’ (NoC) from IWAI. The framework applies to both permanent and temporary terminals, with the latter initially permitted for five years, subject to renewal. Developers will be responsible for the design, construction, and operational efficiency of terminals in accordance with approved business plans.

To ensure a seamless and transparent process, IWAI is developing an online portal for terminal applications. This digital platform will facilitate swift approvals, enhance regulatory compliance, and align with the government's Ease of Doing Business (EODB) agenda.

Accelerating Private Investment and Cargo Growth Under the leadership of Prime Minister Shri Narendra Modi and Union Minister Shri Sarbananda Sonowal, the IWAI has significantly advanced India’s waterways sector. Cargo movement on national waterways has surged from 18 million tonnes to 133 million tonnes in FY 2023-24, underscoring the growing role of IWT in India's trade ecosystem.

The newly introduced Jalvahak scheme is expected to further incentivise private participation by shifting approximately 17% of cargo transport to waterways, reducing road and rail congestion while promoting cost-effective logistics. With streamlined approvals and an investor-friendly approach, the regulations are poised to catalyse infrastructure development, job creation, and economic expansion.

Industry and Market Outlook The inland waterways sector in India is witnessing a transformative shift, with increased private participation unlocking untapped potential. Rising fuel costs, urban congestion, and sustainability concerns are driving businesses towards water-based transport solutions. The new regulations provide a structured framework for private investment, making it easier for logistics firms, port operators, and shipping companies to capitalise on India's vast waterways network.

As the government continues to integrate waterways with multimodal transport systems, industry experts anticipate robust growth in cargo movement, trade competitiveness, and regional connectivity. The National Waterways (Construction of Jetties/Terminals) Regulations, 2025 mark a significant milestone in India's journey towards a world-class inland water transport network.

In a strategic move to modernise and expand the inland water transport sector, the Indian government has introduced the National Waterways (Construction of Jetties/Terminals) Regulations, 2025. Formulated by IWAI under the Ministry of Ports, Shipping and Waterways (MoPSW), these regulations facilitate private, public, and joint venture participation in the construction and operation of jetties and terminals along national waterways. By opening up this critical sector to private players, the regulations aim to reduce logistical bottlenecks, improve cargo handling efficiency, and lower transportation costs. This initiative is set to drive significant economic benefits, reinforcing India's commitment to sustainable transport and multimodal logistics. Regulatory Framework and Compliance The new regulations mandate that any entity seeking to develop an inland waterway terminal must obtain a ‘No Objection Certificate’ (NoC) from IWAI. The framework applies to both permanent and temporary terminals, with the latter initially permitted for five years, subject to renewal. Developers will be responsible for the design, construction, and operational efficiency of terminals in accordance with approved business plans. To ensure a seamless and transparent process, IWAI is developing an online portal for terminal applications. This digital platform will facilitate swift approvals, enhance regulatory compliance, and align with the government's Ease of Doing Business (EODB) agenda. Accelerating Private Investment and Cargo Growth Under the leadership of Prime Minister Shri Narendra Modi and Union Minister Shri Sarbananda Sonowal, the IWAI has significantly advanced India’s waterways sector. Cargo movement on national waterways has surged from 18 million tonnes to 133 million tonnes in FY 2023-24, underscoring the growing role of IWT in India's trade ecosystem. The newly introduced Jalvahak scheme is expected to further incentivise private participation by shifting approximately 17% of cargo transport to waterways, reducing road and rail congestion while promoting cost-effective logistics. With streamlined approvals and an investor-friendly approach, the regulations are poised to catalyse infrastructure development, job creation, and economic expansion. Industry and Market Outlook The inland waterways sector in India is witnessing a transformative shift, with increased private participation unlocking untapped potential. Rising fuel costs, urban congestion, and sustainability concerns are driving businesses towards water-based transport solutions. The new regulations provide a structured framework for private investment, making it easier for logistics firms, port operators, and shipping companies to capitalise on India's vast waterways network. As the government continues to integrate waterways with multimodal transport systems, industry experts anticipate robust growth in cargo movement, trade competitiveness, and regional connectivity. The National Waterways (Construction of Jetties/Terminals) Regulations, 2025 mark a significant milestone in India's journey towards a world-class inland water transport network.

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