Uttar Pradesh Joins Forces With IWAI In Eight Hundred Fifty-Crore Deal To Revitalize Inland Waterways And River Tourism In Varanasi

Published on November 6, 2025

Uttar Pradesh has partnered with the Inland Waterways Authority of India (IWAI) in an ambitious eight hundred fifty-crore deal aimed at revitalizing the state’s inland waterways and river tourism, with Varanasi at the center of this transformation. The collaboration focuses on enhancing infrastructure, sustainability, and connectivity along the Ganga and other major rivers, positioning Varanasi as a key hub for both transport and tourism. With investments in state-of-the-art river cruise terminals, green mobility solutions, and a Regional Centre of Excellence, this initiative seeks to establish a modern, eco-friendly river transport network. The project also aims to create new economic opportunities, boost tourism, and promote sustainable practices, making Varanasi a global leader in river-based travel and a significant contributor to Uttar Pradesh’s economic growth.

The Uttar Pradesh government, in partnership with the Inland Waterways Authority of India (IWAI), has signed five memorandums of understanding (MoUs) worth ₹850 crore, aiming to boost the state’s inland water transport infrastructure, with Varanasi as the central hub. These agreements, formalized during an event in Mumbai, mark a significant step in the development of a sustainable, modern river transport network. The objective is to enhance logistics, tourism, and green mobility across Uttar Pradesh by tapping into its extensive network of rivers, including the Ganga, Yamuna, and several other National Waterways.

Uttar Pradesh is home to some of India’s 111 declared National Waterways, with rivers such as the Ganga, Yamuna, Ghaghara, Betwa, Chambal, Gandak, Gomti, Tons, Ken, and Karmanasha traversing its expanse. These rivers not only hold immense cultural and ecological value but also provide an untapped opportunity for water-based transport. The MoUs aim to harness these resources for economic and environmental benefits by improving connectivity and creating a more efficient river transport system.

Among the major initiatives under this partnership, two world-class river cruise terminals will be constructed in Varanasi, with a combined investment of ₹200 crore. These terminals will play a crucial role in developing river tourism along the Prayagraj-Haldia National Waterway-1 route, a critical waterway for passenger and cargo vessels. Just like airports or railway stations, river cruise terminals will offer state-of-the-art facilities for passenger services, including ticketing, lounges, and docking areas for vessels. These terminals will serve as key transit points for passengers embarking on river cruises along the Ganga, enhancing Varanasi’s profile as a major river tourism hub. The development of these terminals is expected to significantly improve passenger experiences, boost tourism revenue, and provide a sustainable alternative to traditional road or rail travel.

In addition to the cruise terminals, a ₹200-crore Regional Centre of Excellence will be established in Varanasi, spread over 12 acres. The center will focus on the training, research, and development of inland water transport systems. It will offer specialized programs to build a skilled workforce in the sector, and also work towards innovative solutions in logistics, technology, and safety for water transport. The center will collaborate with national and international institutions to drive advancements in inland waterway infrastructure, aiming to place Uttar Pradesh at the forefront of sustainable water transport development.

As part of the green mobility initiative, the MoUs also include a ₹100-crore project for the establishment of shore-based electric charging infrastructure. This will support the operation of hybrid and electric vessels, ferries, and boats, which will significantly reduce the carbon footprint of inland water transport. The electric charging stations will be set up in key cities like Varanasi, Prayagraj, and Ayodhya, among others, providing much-needed infrastructure for sustainable water travel. This green mobility initiative aligns with the broader goal of transitioning to low-emission transport systems in India, further enhancing the environmental sustainability of the Ganga and other waterways in the state.

Another vital aspect of this partnership is the development of a ship repair facility in Varanasi, with an investment of ₹350 crore. This facility will serve as a hub for vessel maintenance, reducing reliance on distant repair centers located in other states. The repair center will not only improve operational efficiency for vessels operating along the National Waterways but will also cut down maintenance costs and turnaround time. This initiative is expected to be a game-changer for the regional shipping industry, allowing local vessels to receive timely repairs and services without significant delays.

To complement the infrastructure and operational improvements, the Uttar Pradesh government is also preparing new Vessel Rules, which are expected to be presented to the Cabinet soon. These rules will create a comprehensive regulatory framework for boats, ferries, and other watercraft operating in the state’s waterways. They will cover several key areas, including vessel registration, crew certifications, safety protocols, pollution control measures, and insurance requirements. The Vessel Rules will set technical standards for vessel construction and operations, ensuring the safety and reliability of water transport across the state. By creating a regulated environment, these rules aim to standardize operations and reduce risks associated with the operation of vessels, ensuring a safer and more efficient transport system for both passengers and cargo.

The combined investment and initiatives under these MoUs represent a transformative shift for Uttar Pradesh’s inland water transport sector. With improved infrastructure, sustainable practices, and a skilled workforce, the state is set to become a regional leader in water-based transport. This development is expected to boost local economies by increasing trade, tourism, and employment opportunities. Additionally, the state’s focus on green mobility aligns with national goals for reducing carbon emissions and enhancing sustainability in the transport sector.

The project will also have broader benefits for India’s overall river transport network. By establishing Varanasi as a key transport hub, the government aims to strengthen the connectivity between the northern and eastern regions of the country, enabling smoother movement of goods and passengers across National Waterway-1 and beyond. This, in turn, will help reduce congestion on roads and railways, offering an alternative transport route that is both eco-friendly and cost-effective.

Uttar Pradesh has partnered with IWAI in an eight hundred fifty-crore deal to transform Varanasi into a key hub for inland waterways and river tourism, focusing on modern infrastructure, sustainable transport, and boosting local economic growth through enhanced connectivity and eco-friendly initiatives.

the Uttar Pradesh government’s collaboration with the Inland Waterways Authority of India is set to revolutionize the state’s inland water transport sector. Through strategic investments, green mobility initiatives, and regulatory reforms, Uttar Pradesh is positioning itself as a pioneer in modern river transport, with significant benefits for tourism, logistics, and environmental sustainability. The creation of world-class infrastructure, coupled with innovative projects, will ensure that the state becomes a key player in India’s inland waterways sector, paving the way for further growth and development in the years to come.