The development follows Prime Minister Narendra Modi recent review of important infrastructure projects.
"Process of establishment of PMU (project monitoring unit) has been completed," Shipping Ministry has said in a communication to the Finance Ministry.
The project includes developing the National Waterways-1 between Allahabad-Varanasi -Buxar-Patna-Haldia, which has several religious places.
The Ministry said a detailed project report for 'Jal Marg Vikas' (National Waterways-I) is under preparation for it to cover a distance of 1,620 km, which will enable commercial navigation of at least 1500 tonne vessels.
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At present, the cruise ships can ply between Kolkata and Varanasi for about 8 months.
President Pranab Mukherjee in his address had said Inland and Coastal waterways will be developed as major transport routes.
Finance Minister Arun Jaitely while presenting budget had also said that a project on river Ganga will be developed between Allahabad and Haldia to cover a distance of 1620 km, which will enable commercial navigation of at least 1500 tonne vessels.