New Delhi, February 1, 2026 – In a bold move to strengthen India’s logistics and maritime infrastructure, Finance Minister Nirmala Sitharaman, during the Union Budget 2026-27, announced a series of initiatives aimed at enhancing freight movement, inland waterways, and shipbuilding capabilities, with a particular focus on Odisha and regional inland waterway development. These projects are expected to boost industrial connectivity, promote eco-friendly transportation, and position India as a global maritime and logistics hub.
Dedicated Freight Corridors (DFCs)
Odisha will see the development of a 1,115-km East Coast Dedicated Freight Corridor, linking Kalinga Nagar industrial hub to southern India and connecting with the Eastern Dedicated Freight Corridor for western connectivity. The corridor will provide faster movement of goods to key ports, including Paradip, Dhamra, and Gopalpur, reducing transit time and strengthening Odisha’s role as a logistics powerhouse.
Inland Waterways Development
The National Waterway-5 (NW-5) will connect the mineral-rich Talcher and Angul regions with industrial hubs in Kalinga Nagar and the ports of Dhamra and Paradip. Covering approximately 332 km of the Brahmani-Kharsua-Dhamra river system, East Coast Canal, and Mahanadi delta, the project includes modern terminals, navigation locks, and a 3-meter fairway to enable 24-hour navigation.
The initiative is being implemented via a Special Purpose Vehicle (SPV) – Inland Waterways Consortium of Odisha Ltd (IWCOL) – to ensure coordinated development and operational efficiency.
Ship Repair Ecosystem
To reduce downtime for vessels operating on National Waterway-1 (Ganga), the government plans dedicated ship repair facilities at Varanasi and Patna. These hubs will service conventional, hybrid, and electric inland vessels, creating a self-sustaining ship repair ecosystem and enhancing inland navigation reliability.
Coastal Shipping and Maritime Targets
The Budget sets ambitious targets to increase coastal shipping from 6% to 20% by 2030, in line with the Maritime India Vision (MIV) 2030. The focus will be on transporting coal, iron ore, and industrial products via eco-friendly water transport, reducing reliance on road and rail freight. A ₹12,200 crore investment was earmarked in late 2025 for developing Odisha’s waterways (NW-5 and NW-64).
Port Expansion and Shipbuilding
Odisha’s port infrastructure is set for expansion with new ports at Astaranga, Jatadhari Muhan, Subarnarekha, and Bahuda, complementing existing ports at Paradip, Dhamra, and Gopalpur. In addition, a mega shipbuilding cluster is planned at Kendrapara, with an investment of ₹22,700 crore, positioning Odisha as a strategic maritime manufacturing hub.
The Bigger Picture
With these initiatives, FM Sitharaman emphasized Aatmanirbharta and sustainable growth, aiming to transform Odisha into a key industrial and maritime corridor, boost eco-friendly freight movement, and generate employment in logistics, shipbuilding, and ancillary industries. The Budget’s focus on strategic infrastructure projects reflects the government’s long-term vision for India as a global industrial and maritime leader by 2047.