Finance Minister Nirmala Sitharaman announced the operationalization of National Waterway 5 (NW-5) in Odisha as a priority project under the Union Budget 2026–27, marking a major step in India’s push for sustainable and cost-efficient logistics.
The development of NW-5 aims to strengthen Odisha’s industrial logistics by connecting the mineral-rich regions of Talcher and Angul with industrial hubs like Kalinganagar, while providing a seamless corridor to deep-water ports at Paradip and Dhamra. The waterway is expected to facilitate the efficient movement of coal, iron ore, and finished steel, reducing pressure on congested road and rail networks.
In tandem with the waterway’s launch, the Finance Minister also proposed the creation of specialized training institutes along the river stretches. These institutes will serve as regional centers of excellence, focusing on developing a skilled workforce in inland navigation and vessel operations, thereby generating employment and vocational opportunities for local youth.
The project forms part of the government’s larger vision to double the share of inland waterways and coastal shipping in India’s transport modal mix from 6% to 12% by 2047. By shifting heavy cargo from roads and railways to waterways, the initiative is expected to reduce carbon emissions and enhance the global competitiveness of Odisha’s manufacturing and mining sectors.