Union Budget 2026–27: New freight corridor, waterways to boost Odisha’s industrial connectivity

Union Finance Minister Nirmala Sitharaman on Sunday announced major infrastructure initiatives with a strong focus on Odisha, aimed at promoting environmentally sustainable movement of cargo and strengthening logistics connectivity.

Presenting the Union Budget 2026–27, Sitharaman said the Centre proposes to establish new dedicated freight corridors linking Dankuni in the east to Surat in the west. She also announced plans to operationalise 20 new waterways over the next five years, beginning with National Waterway–5 in Odisha.

The Finance Minister said National Waterway–5 will connect mineral-rich regions such as Talcher and Angul with key industrial hubs like Kalinganagar and provide seamless access to the ports of Paradip and Dhamra. The move is expected to significantly reduce logistics costs, ease congestion on roads and railways, and support greener cargo transportation.

Highlighting allied infrastructure development, Sitharaman said a ship repair ecosystem catering to inland waterways will be set up at Varanasi and Patna to support the expanding waterways network.

The proposed initiatives are expected to give a major boost to Odisha’s mining, steel and manufacturing sectors, while enhancing port-led development and positioning the state as a critical logistics hub in eastern India.

Sitharaman also announced the setting up of dedicated rare-earth corridors in mineral-rich states, including Odisha, as part of the Union Budget 2026–27, aimed at strengthening domestic supply chains and reducing import dependence.

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Recalling that a scheme for rare-earth permanent magnets was launched in 2025, the Finance Minister said the Centre will now support Odisha, Kerala, Andhra Pradesh and Tamil Nadu in establishing specialised rare-earth corridors. “This initiative will promote mining, processing, research and manufacturing,” Sitharaman said while presenting the Budget in Parliament.