New Delhi: Finance Minister Nirmala Sitharaman has announced the operationalization of National Waterway 5 in Odisha as a priority project under the Union Budget 2026–27. The move is part of a broader government strategy to operationalize 20 new national waterways over the next five years to promote environmentally sustainable cargo movement and reduce logistics costs.
The development of National Waterway 5 is designed to provide a critical logistics link for the state’s industrial heartland. It will connect the mineral-rich regions of Talcher and Angul with major industrial hubs like Kalinganagar. Crucially, the waterway will establish a seamless transport corridor to the deep-water ports of Paradip and Dhamra, facilitating the efficient movement of coal, iron ore, and finished steel.
To support this new aquatic infrastructure, the Finance Minister also proposed the establishment of specialized training institutes. These facilities will function as regional centers of excellence, focused on developing a skilled workforce to manage inland navigation and vessel operations. This initiative is expected to create significant employment and vocational opportunities for the youth living along the river stretches.
The project aligns with a larger national goal to double the share of inland waterways and coastal shipping in India’s modal mix, aiming to increase it from the current 6 percent to 12 percent by 2047. By shifting heavy cargo from congested road and rail networks to water, the government expects to significantly lower carbon emissions and enhance the global competitiveness of Odisha’s manufacturing and mining sectors.