India’s National Waterways Initiative to Boost Private Investment and Infrastructure by 2025

The national waterways, set to be completed by 2025, are aimed at attracting private sector investments for the construction of terminals and streamlining processes within the Indian Waterway network. The government expects that these regulations will lead to increased involvement of private entities in the development and expansion of domestic waterway terminals, ultimately contributing to the growth of the sector. This initiative is a significant step towards enhancing infrastructure development and improving business operations, as outlined by the Domestic Waterways Authority of India and the Ministry of Ports, Shipping, and Waterways.

Over the past decade, freight movement on National Waterways has seen a substantial increase, from 18 million tons to 133 million tons in the 2023-24 financial year. This growth aligns with the Prime Minister’s vision to promote sustainable development, enhance private sector participation, and facilitate business operations through digitization and streamlined processes. The newly launched Jalvahak program is expected to further boost private sector participation by encouraging a shift in freight transportation on national waterways, leading to increased economic activity.

The new regulations require companies, including private entities, interested in developing or operating terminals on national waterways to obtain a “NO-OBJECTION certificate” (NOC) from IWAI. These regulations apply to both existing and new terminals, whether permanent or temporary. Operators of permanent terminals can maintain them for the service life, while operators of temporary terminals have an initial term of five years with the possibility of extensions. By providing opportunities for investments, trade, and economic growth, these regulations enhance logistical efficiency and open up new horizons for private players in the sector.

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