BHUBANESWAR: The much-awaited National Waterway-5 (NW-5) that will connect Mahanadi and Brahmani delta with the industrial belts of Kalinga Nagar and Talcher in Odisha is all set to take off with Union Finance minister Nirmala Sitharaman on Sunday proposing operationalisation of 20 new National Waterways (NWs) over next five years.
To promote environmentally sustainable movement of cargo, Sitharaman announced in the Budget 2026-27 to establish new dedicated freight corridors connecting Dankuni in the East to Surat in the West and operationalise 20 NWs, starting with NW-5 in Odisha to connect mineral-rich areas of Talcher and Angul and industrial centres like Kalinga Nagar to the ports of Paradip and Dhamra.
“Training institutes will be set up as regional Centres of Excellence (CoEs) for development of the required manpower. This will benefit youth in the entire stretch of the waterways to train and acquire skills,” she said.
Announced in 2008, the 588 km NW-5 was dragging its feet due to lack of viability and fund constraints. Once completed, it will connect Mahanadi, Brahmani delta, Matai river and East Coast Canal with the industrial belts and provide an alternative mode of transportation.
Although the Inland Waterways Authority of India (IWAI) has collaborated with the Odisha government, Paradip Port Authority (PPA) and Mahanadi Coalfields Limited (MCL) for expeditious operationalisation of NH-5 at an estimated cost of Rs 12,200 crore, officials said, announcement of the project in the budget will give it speed and ensure its early completion.
The project will be implemented through a Special Purpose Vehicle (SPV)-Inland Waterways Consortium of Odisha Limited (IWCOL), while IWAI will lead the preparation of project proposals, obtain statutory clearances and develop critical infrastructure, including terminals, barrages and navigation systems.
Initially, 332 km of NW-5 between Paradip, Dhamra and Talcher will be taken up out of the proposed three stretches - 237 km from Talcher to Mangalgadi, 95 km from Dhamra to Paradip and 256 km from Dhamra to Geonkhali. Officials said NW-5 has been expanded from Talcher to Pankapal (till the lower end of Samal barrage) for smooth evacuation of coal and other minerals and make the project viable.
Additional chief secretary of Commerce and Transport department Usha Padhee said, “The prioritisation of NW-5 linking Odisha’s mineral-rich hinterland with major industrial hubs and strategic ports will significantly enhance bulk cargo movement while easing pressure on road and rail infrastructure. It aligns seamlessly with Odisha’s vision of port-led industrialisation.”