Finance Minister Nirmala Sitharaman presented the Union Budget 2026-27 on February 1, 2026. In a major announcement to boost transport, she declared the development of 20 new National Waterways across India. The government aims to make these waterways functional within the next five years. This initiative is expected to reduce logistics costs and ease the pressure on existing road and rail networks.
What are the key details of the new Waterways project?
The project will prioritise the development of National Waterway 5 (NW5) in Odisha. This route is designed to connect mineral-rich zones like Talcher and Angul with Paradip and Dhamra ports. It will also serve major industrial centers in Kalinganagar. The government has allocated a massive budget for infrastructure, raising the capital expenditure (Capex) to ₹12.2 lakh crore for the financial year 2026-27.
What funds and schemes are announced for the shipping sector?
A Maritime Development Fund of ₹25,000 crore has been set up for long-term financing needs. This includes ₹20,000 crore for investment and ₹5,000 crore for interest incentives. To support shipbuilders, schemes worth over ₹44,000 crore were introduced. Additionally, specific ship repair ecosystems will be established in Varanasi and Patna for inland waterways. A new Seaplane VGF scheme will also launch to improve connectivity in remote areas.
