Union Finance Minister Nirmala Sitharaman has announced the operationalisation of 20 new National Waterways over the next five years, starting with the Rs 12,204-crore National Waterway 5 in Odisha. This project aims to connect mineral-rich areas to major ports, easing logistics and boosting the state's maritime potential. Officials highlight its role in reducing transport costs and emissions.
The Union Budget for 2026, presented by Finance Minister Nirmala Sitharaman, includes a significant push for inland waterways development. Among the highlights is the Rs 12,204-crore National Waterway 5 (NW-5) in Odisha, marking the start of plans to operationalise 20 such waterways nationwide over the next five years.
Proposed as early as 2008, NW-5 was intended to provide an economical and eco-friendly alternative to road and rail freight. However, the 588-km project faced delays due to agency coordination issues, funding shortages, and viability doubts. A memorandum of understanding was signed in June 2014 between the Odisha government and the Inland Waterways Authority of India (IWAI), but progress stalled until recently.
The revival gained momentum with the establishment of the Odisha Maritime Board. A special purpose vehicle (SPV) has been reconstituted, involving the state government, IWAI, Paradip Port Trust, and Mahanadi Coalfields Limited (MCL), a Coal India subsidiary. A fresh feasibility study by IIT Madras informed the project's design, including the detailed project report and engineering for cross structures.
The waterway will run along the Brahmani river and Mahanadi delta, linking industrial hubs like Kalinganagar—home to steel plants—with ports at Paradip and Dhamra. It will also connect mineral areas in Talcher and Angul districts.
Odisha's Commerce and Transport Secretary Usha Padhee stated, “The state government has already given its consent to the IWAI that it will support in terms of providing land required for the project and financial support up to Rs 4,000 crore.” She added that an MoU was signed on October 27, 2025, during India Maritime Week in Mumbai, between IWAI, Paradip Port Authority, Odisha Maritime Board, and the Ministry of Coal, for the Rs 12,204-crore initiative.
Padhee emphasized the benefits: “By facilitating the modal shift of coal, minerals, and steel from road and rail to waterways, NW-5 will help decongest transport networks, reduce logistics costs, and lower carbon emissions, aligning with India’s sustainability goals.” The project is expected to foster economic growth, create jobs in logistics, and enhance multimodal connectivity.
Odisha Chief Minister Mohan Charan Majhi welcomed the announcement, noting it would alleviate pressure on railways and roads, positioning the state as an east coast industrial and logistics hub. He also praised the inclusion of a rare-earth corridor involving Odisha.