Andhra Pradesh Invites Tenders for Rs 1,700 Crore Waterway Project to Boost Port and Logistics Connectivity

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The Andhra Pradesh government has invited tenders for developing a 168-km navigation corridor at an estimated initial cost of Rs 1,700 crore, aiming to strengthen waterways-based freight transportation and improve industrial connectivity across the state.

The proposed project seeks to shift a portion of industrial cargo from roads to waterways, potentially reducing logistics costs and easing pressure on road networks. The corridor will include an 82-km stretch along the Krishna River, connecting Muktyala to Prakasam Barrage, along with another stretch extending towards Machilipatnam Port.

The waterway is expected to support the transportation of bulk commodities such as cement, limestone and fly ash from industrial clusters in the Jaggayyapeta belt. Improved access to waterways could help industries transport large volumes of goods more efficiently while strengthening connections between manufacturing centres and port infrastructure.

The project has received in-principle approval from the Inland Waterways Authority of India (IWAI). Its implementation is planned through a public-private partnership (PPP) model, allowing private participation in developing and operating the infrastructure.

The initiative forms part of broader efforts to develop National Waterway-4 and expand the role of inland water transport in industrial logistics.

Once developed, the corridor could improve freight movement, support regional industrial growth and strengthen connectivity between inland production centres and maritime trade routes.

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