Bhubaneswar: Odisha Government has welcomed the Union Budget 2026’s strategic focus on the development of National Waterway-5 (NW-5), hailing it as a transformative move for the state’s logistics and industrial landscape.
Shrimati Usha Padhee, Additional Chief Secretary, Commerce & Transport, Odisha characterized the decision as a “decisive step” toward creating a sustainable, cost-efficient, and future-ready transport ecosystem.
The development of NW-5 is designed to link Odisha’s mineral-rich interior regions, specifically the Talcher and Angul coalfields, with major industrial clusters like Kalinganagar and the strategic ports of Paradip and Dhamra.
Smt.Padhee noted that this waterway will facilitate the bulk movement of cargo—including coal, iron ore, and steel—which is currently heavily reliant on road and rail networks.
By shifting a significant portion of this freight to water, the state expects to: Reduce overall logistics costs for industries, decongest overstretched rail corridors and highways and lower the carbon footprint of the state’s industrial sector.
The project aligns with Odisha’s long-term vision of “port-led industrialization” and “green mobility.” Ms. Padhee emphasized that utilizing inland waterways is a more environmentally sustainable method of transport, contributing directly to India’s broader climate and sustainability goals.
The budget’s emphasis also includes the establishment of Regional Centres of Excellence to train and upskill local youth, ensuring a steady pipeline of manpower to manage the evolving inland waterway and maritime logistics sector.
To ensure the project moves from blueprint to reality within a strict timeframe, the state is leveraging the Inland Waterways Consortium of Odisha Limited (IWCOL). This Special Purpose Vehicle (SPV) serves as a collaborative platform between: The Government of Odisha, Inland Waterways Authority of India (IWAI), Paradip Port Authority (PPA) and Mahanadi Coalfields Limited (MCL)
This consortium will handle critical infrastructure development, including the construction of terminals, barrages, and advanced navigation systems across the Brahmani River and East Coast Canal stretches.
Beyond industrial efficiency, the operationalization of NW-5 is expected to act as a catalyst for regional economic growth. The creation of new terminals and logistics hubs along the waterway is projected to generate significant employment opportunities and strengthen multimodal connectivity, positioning Odisha as a primary hub for green logistics in Eastern India.