Finance Minister Nirmala Sitharaman presented the Union Budget 2026-27 on February 1, 2026. A major focus of this budget was on improving the transport infrastructure of the country. The government has announced the development of 20 new National Waterways to strengthen logistics. The plan aims to make these waterways operational within the next five years to reduce the load on roads and railways.
Which areas will get the new waterway projects?
The government has prioritized the development of National Waterway 5 (NW5) in Odisha. This project will be the first to start under the new plan. It will connect the mineral-rich areas of Talcher and Angul with the ports of Paradip and Dhamra. This connectivity will help industries in moving goods faster and cheaper.
Apart from Odisha, the government is also focusing on Uttar Pradesh and Bihar. New ship repair ecosystems will be established in Varanasi and Patna. This will help in the maintenance of vessels used in inland waterways. The government believes this will create a better environment for using rivers for transport.
How much money is allocated for these schemes?
The Finance Minister proposed a capital expenditure of ₹12.2 lakh crore for infrastructure in the financial year 2026-27. To support the maritime sector, several funds and schemes have been introduced. A special Maritime Development Fund of ₹25,000 crore has been set up for long-term financing.
The government also allocated funds for modernizing ports and shipbuilding. The allocation details are as follows:
- Sagarmala 2.0: ₹40,000 Crore for next 10 years
- Shipbuilding Schemes: Approx ₹44,725 Crore total
- Maritime Investment Fund: ₹20,000 Crore
- Interest Incentive Fund: ₹5,000 Crore
What are the new rules for seaplanes and cargo?
The budget also introduced the Seaplane VGF Scheme. This scheme will provide financial support to operate seaplanes in remote areas and ensure last-mile connectivity. The government wants to make air travel accessible to difficult terrains through water bases.
A new Coastal Cargo Promotion Scheme will also be launched. This policy aims to increase the share of coastal shipping in the country’s total transport mix. Experts say these steps will bring down logistics costs, which are currently about 8% of the GDP, and help in reducing pollution.
