The Union Budget 2026-27 has unveiled a significant infrastructure push with a proposal to operationalise 20 new national waterways over the next five years. This initiative is set to commence with the development of National Waterway-5 (NW-5) in Odisha, aiming to revolutionize the movement of minerals from mining belts to ports while alleviating pressure on the state's overburdened road networks.
Strategic Importance of NW-5 for Odisha's Economy
By establishing a seamless water-based corridor linking mineral-rich regions like Talcher and Angul, along with industrial hubs such as Kalinga Nagar, to key ports at Paradip and Dhamra, NW-5 is projected to substantially lower logistics expenses. This development is expected to strengthen bulk cargo supply chains and significantly decongest highways, offering a more efficient and sustainable transport alternative.
Historical Context and Project Details
NW-5, which encompasses the Mahanadi-Brahmani delta, the Matai river, and the east coast canal, was originally notified in November 2008, spanning approximately 588 kilometers. A subsequent detailed project report segmented the route into three distinct stretches:
- Talcher to Mangalgadi (237 km)
- Dhamra to Paradip (95 km)
- Dhamra to Geonkhali (256 km)
Following feasibility studies and the submission of a DPR in 2016, the Inland Waterways Authority of India (IWAI) identified 332 kilometers between Paradip/Dhamra and Talcher as economically viable for development in two phases, while the Dhamra-Geonkhali stretch was deemed unfeasible.
Progress and Renewed Momentum
Although NW-5 had an initial completion target of 2017, the project faced delays and did not materialize as planned. However, the 2023 state government reported that work on both phases of NW-5 along the Mahanadi was progressing, with development underway for the first phase and preliminary work initiated for the second. Under the National Waterways Act, two waterways are planned on the Mahanadi: NW-5 and NW-64. The first phase of NW-5 covers 201 km, connecting Jokadia and Pankapal (Kalinganagar) to Dhamra and Paradip via Mangalgadi, while the second phase spans 131 km, linking these points to the coal-rich Talcher area. NW-64 is intended to connect Sambalpur with Paradip.
The recent Budget announcement has reignited expectations for accelerated implementation in Odisha. In her Budget speech, Union Finance Minister Nirmala Sitharaman emphasized that national waterways will be operationalised to promote environmentally sustainable cargo movement. Additionally, she announced plans to upgrade training institutes as regional centres of excellence to build skilled manpower for the sector.
Expert Insights on Inland Waterways
R K Panda, former professor and head of the School of Infrastructure at IIT Bhubaneswar, highlighted that roads are already overcrowded, and mere expansion will not suffice to meet future freight demands. He advocated for inland waterways as a solution to reduce pressure on road and rail networks, potentially decreasing accident rates.
Transport expert Dilip Kumar Samantray noted that inland water transport is more cost-effective than road and rail, making it crucial as Odisha's coal and iron ore sectors expand. He pointed out that waterways can mitigate accidents, lower air pollution, and cut transport costs, urging mission-mode development for the project.
Samantray also referenced the Centre's proposed coastal cargo promotion scheme, designed to incentivize a shift from road and rail transport. This initiative aims to increase the share of inland waterways and coastal shipping from 6% to 12% by 2047, potentially supporting a smoother transition to water-based logistics.
The Budget 2026 focus on national waterways, particularly NW-5, marks a pivotal step towards enhancing Odisha's transport infrastructure, promising economic benefits through reduced logistics costs and improved sustainability in mineral movement.
