Budget 2026 Unveils Major Push for Inland Waterways and Coastal Shipping
The government on Sunday unveiled a series of ambitious announcements aimed at boosting inland waterways and increasing the share of cargo transport through coastal shipping. This strategic move is designed to reduce logistics costs, improve connectivity across regions, and support sustainable transport solutions as part of a broader infrastructure development plan.
Operationalising Key Waterways and Expanding National Network
Finance Minister Nirmala Sitharaman stated that the government will operationalise 20 inland waterways, including the significant National Waterway-5 (Mahanadi). This waterway will connect mineral-rich areas like Talcher and Angul to major industrial centres such as Kalinga Nagar, as well as key ports like Paradeep and Dhamra in Odisha, facilitating efficient cargo movement.
Shipping Minister Sarbananda Sonowal highlighted that the number of national waterways is set to increase from the current 32 to 52 over the next five years. This expansion is expected to provide a cleaner and more environmentally friendly mode of transport for both cargo and passengers, aligning with sustainability goals.
New Initiatives and Financial Allocations
The Budget also announced the establishment of a dedicated ship repair ecosystem catering specifically to inland waterways, with facilities planned in Varanasi and Patna. This initiative aims to enhance maintenance capabilities and support the growing waterways infrastructure.
Furthermore, a Coastal Cargo Promotion Scheme has been launched with the objective of increasing the share of inland waterways and coastal shipping from the current 6% to 12% by 2047. This scheme is part of efforts to diversify transport modes and reduce dependency on road and rail networks.
In terms of financial commitments, the government allocated approximately Rs 3 lakh crore to the road transport ministry for the fiscal year 2026-27, marking a 9% increase compared to the current year. Out of this, around Rs 2.9 lakh crore is earmarked for capital expenditure, making the road ministry the recipient of the maximum allocation for asset creation.
Infrastructure Risk Guarantee Fund to Boost Private Investment
To strengthen confidence among private developers and lenders, the Finance Minister announced the setting up of an Infrastructure Risk Guarantee Fund. This fund will provide prudently calibrated partial credit guarantees to lenders, aiming to mitigate risks and encourage greater private sector participation in infrastructure projects.
These comprehensive measures underscore the government's focus on enhancing transport efficiency, reducing logistics expenses, and promoting sustainable development through strategic investments in waterways and related infrastructure.
