The Inland Waterways Authority of India (IWAI) is stepping up its focus on Odisha, with the state’s waterways being positioned as an important link between its mineral-rich industrial hinterland and major coastal ports such as Paradip and Dhamra. The renewed focus comes as the government seeks to expand inland water transport as a cost-efficient alternative for moving bulk cargo.
IWAI Chairman Sushil Kumar Lohani, who recently took charge of the authority, has conducted a review of National Waterway 5 (NW-5). The waterway extends for about 588 km, with particular attention being given to the economically important 332-km stretch connecting Talcher, Pankapal, Paradip and Dhamra.
The development of NW-5 is expected to strengthen connectivity between Odisha’s major industrial and mineral-producing areas and its seaports. Talcher and Angul, in particular, are important centres for coal and other industrial activity, while Kalinganagar is a major steel and manufacturing hub. Better inland water connectivity could provide industries with an additional option for transporting bulk commodities to export gateways.
The Odisha government has welcomed the development of NW-5, viewing it as an opportunity to create a more sustainable and cost-efficient logistics network. The waterway is intended to connect industrial clusters, including the Talcher and Angul coalfields, with Paradip and Dhamra ports.
The push is part of India’s broader strategy to increase cargo movement through inland waterways. The country has 111 notified National Waterways covering 20,187 km, of which 32 are currently operational. Cargo transported through National Waterways reached a record 145.84 million tonnes in FY2024-25, while the Union Budget 2026-27 has proposed operationalising 20 additional waterways over the next five years.
For Odisha, greater use of waterways could reduce pressure on roads and railways, particularly for high-volume commodities such as coal, minerals, steel and other industrial cargo. It could also improve the efficiency of port-hinterland connectivity and support the development of multimodal logistics networks.
The renewed attention on NW-5 comes as IWAI’s new leadership seeks closer coordination with state governments, ports, industry and other stakeholders to expand inland water transport. Lohani’s previous administrative experience in Odisha could also support closer coordination on projects in the state.
If the planned infrastructure and navigation improvements progress as envisaged, Odisha could emerge as one of India’s important inland waterway logistics centres, linking its industrial heartland with major maritime gateways and strengthening the state’s overall logistics ecosystem.