Syllabus: GS-III & V – Infrastructure 

Why in the News?

The Inland Waterways Authority of India (IWAI) signed several high-value MoUs with Assam Petro-Chemicals Ltd., the Government of Assam, and private companies to strengthen river transport, cargo movement, and tourism across the Northeast.

Transformative Push for Inland Waterways in Assam and the Northeast

• The MoUs mark a major step in developing the Brahmaputra and Barak river systems as engines of economic growth under India’s focus on inland water transport.
• Union Minister Sarbananda Sonowal chaired a review meeting in Guwahati, announcing the initiatives aimed at integrating trade, petroleum logistics, tourism, and urban mobility.
  

Key MoUs Signed

• MoU with Assam Petro-Chemicals Ltd. for Methanol & Formalin Transport

• IWAI and APL signed a major agreement to transport methanol and formalin through the Indo-Bangladesh Protocol Route (IBPR) and National Waterways.
• Exports will move through Bogibeel, Pandu, and Jogighopa terminals, connecting Assam to Bangladesh and Southeast Asia.
• APL produces 198,000 MT of methanol and 115,000 MT of formalin annually, making river transport a cost-effective and environmentally friendly option.
• IWAI will construct 10 flat-bottom tanker barges and upgrade firefighting, bunkering, and navigation systems.
  

• MoU for Water Metro (Urban Water Transport System)

• A second MoU with the Government of Assam proposes a Water Metro linking Guwahati, Tezpur, and Dibrugarh.
• The project cost is estimated at ₹1,000 crore, with electric-hybrid boats and integration with road, rail, and bus networks.
• Kochi Metro Rail Ltd. is preparing the feasibility study.
• This will reduce congestion, improve mobility, and promote sustainable urban transport.
  

• Expansion of Cruise Tourism

• A ₹500-crore MoU with Heritage River Journeys will bring new cruise vessels and develop tourism circuits on the Brahmaputra and other waterways.
• River lighthouses at Bogibeel, Silghat, Biswanath Ghat, and Pandu will be built to support navigation and cultural tourism.
• Cruise terminals at Neamati, Silghat, Biswanath Ghat, and Guijan will receive an investment of ₹299 crore.
  

• Logistics Modernisation with Rhenus Logistics

• A landmark MoU with Rhenus Logistics will introduce modern tug-barges on NW-1 and NW-2, supporting heavy industrial cargo.
• A Regional Centre of Excellence in Dibrugarh, costing ₹188 crore, will train nearly 5,000 students in maritime operations.
• Another ₹55-crore project will develop key logistics land in Guwahati.
  

Major Inland Waterway Projects in Eight Northeast States

• Mizoram: IWT development on Tlawng and Chhimtuipui rivers.
• Nagaland: DPRs for Doyang Lake and tourism at Noune & Shilloi Lakes.
• Manipur: IWT DPRs for Barak, Imphal and Nambul rivers.
• Meghalaya: Umiam Lake and Umngot River studies under NW-106.
• Tripura: ₹24.53 crore project linking Gumti River with Bangladesh’s Meghna system.
• Arunachal Pradesh: IWT infrastructure on Siang River including floating jetties and solar vessels.
• Assam: Multiple terminals upgraded, ship repair facility at Pandu, tourism infrastructure, and cargo projects.
  

Significance of the MoUs 

• Boosts cargo movement in Assam by strengthening inland waterways and reducing logistics costs.
• Enhances cross-border trade through the Indo-Bangladesh Protocol Route for petroleum, methanol and industrial cargo.
• Promotes sustainable transport with lower fuel use and emissions.
• Expands tourism via cruise vessels, river terminals and lighthouse development.
• Improves urban mobility through Water Metro systems in Guwahati, Tezpur and Dibrugarh.
• Creates jobs and skills with new terminals, ship repair facilities, and the Dibrugarh Centre of Excellence.
• Supports Act East Policy, improving connectivity to Bangladesh and Southeast Asia.
• Encourages private investment in logistics, tourism and vessel operations.
  

Conclusion

The MoUs signed by the Inland Waterways Authority of India mark a pivotal step in repositioning Assam and the wider Northeast as a strategic logistics and trade hub. By modernising river transport, expanding cross-border connectivity, and integrating tourism and skill development, these initiatives strengthen economic resilience while aligning with India’s Act East Policy. If implemented effectively, the Northeast’s waterways can evolve into engines of sustainable growth, lower logistics costs, and unlock long-term regional prosperity.

Key Terms Explained 

• Inland Water Transport: Moving people or goods through rivers and waterways.
• National Waterways: Declared major river routes developed by the government.
• Indo-Bangladesh Protocol Route: Bilateral river navigation agreement enabling trade.
• Tug-barge System: Powerful tugboat pulls barges to move heavy cargo cheaply.
• Urban Water Transport (Water Metro): Public transport on rivers using ferries or electric boats.
  

Exam Hook – Mains Question

“Discuss the role of inland waterways in boosting economic connectivity in the Northeast. Examine the significance of recent MoUs signed by IWAI in strengthening regional logistics and India’s Act East Policy.”

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