

BHUBANESWAR: After nearly two decades of its announcement, the National Waterways-5 (NW-5), aimed at opening an alternative transport line between Paradip and Dhamra ports and the industrial hubs of Kalinganagar and Talcher, is likely to take shape with the Inland Waterways Authority of India (IWAI) stepping in to carry the work forward.
The IWAI has collaborated with the Odisha government, Paradip Port Authority (PPA) and Mahanadi Coalfields Limited (MCL) for expeditious operationalisation of National Waterways-5 (NW-5) and NW-64. An MoU to this effect was signed during the India Maritime Week 2025 celebrations at Mumbai recently.
The collaboration will help harness Odisha’s riverine system for sustainable freight movement and regional economic growth. The project to be taken up at an estimated investment of Rs 12,200 crore is expected to facilitate seamless transportation of coal and other bulk cargo from Talcher coalfields to Paradip and Dhamra ports through inland waterways.
Announced in 2008, the 588 km NW-5, which was envisaged to connect Mahanadi, Brahmani Delta, Matai river and East Coast Canal with the industrial belts of Kalinganagar and Talcher to provide an alternative mode of transportation, was dragging its feet due to lack of viability.
Initially, 332 km of NW-5 between Paradip, Dhamra and Talcher will be taken up out of the proposed three stretches - 237 km from Talcher to Mangalgadi, 95 km from Dhamra to Paradip and 256 km from Dhamra to Geonkhali.
Similarly, NW-64 involves 425 km of Mahanadi river from Paradip sea mouth to Sambalpur barrage. After a feasibility study, it has been decided to take up the 98-km stretch from Paradip port to Cuttack barrage by incorporating 75 km stretch of Luna river in the first phase.
The Commerce and Transport department said, the project will be implemented through a Special Purpose Vehicle (SPV) - Inland Waterways Consortium of Odisha Limited (IWCOL). IWAI will lead the preparation of project proposals, obtain statutory clearances and develop critical infrastructure, including terminals, barrages and navigation systems.
As per the agreement, the state government will provide encumbrance-free land, facilitate clearances and extend administrative support while MCL will ensure assured cargo movement and first-mile connectivity. Similarly, PPA will promote cargo handling and encourage modal shift to inland waterways.
Principal secretary of Commerce and Transport department Usha Padhee signed the agreement on behalf of the Odisha government. “This initiative will help reduce logistics costs, decongest road and rail networks and promote environment-friendly transportation, aligning with the Centre’s Viksit Bharat @2047 vision,” she said.