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Union Budget 2026–27: Odisha to Get Freight Corridors, New Waterways and Rare-Earth Hubs

Union Budget 2026–27: Odisha to Get Freight Corridors, New Waterways and Rare-Earth Hubs

In the Union Budget 2026–27, Finance Minister Nirmala Sitharaman announced major infrastructure projects with a focus on Odisha, including new dedicated freight corridors, operationalisation of National Waterway–5, and the development of rare-earth corridors. The initiatives aim to improve logistics connectivity, reduce transportation costs, promote green cargo movement, and strengthen domestic supply chains.

Union Finance Minister Nirmala Sitharaman on Sunday unveiled a series of infrastructure and industrial initiatives in the Union Budget 2026–27, with Odisha emerging as a key beneficiary. A major highlight was the proposal to establish new dedicated freight corridors connecting Dankuni in eastern India to Surat in the west, aimed at enhancing efficient and sustainable cargo movement.

The Finance Minister also announced plans to operationalise 20 new inland waterways over the next five years, starting with National Waterway–5 in Odisha. This waterway will link mineral-rich areas such as Talcher and Angul with major industrial centres including Kalinganagar, while providing direct connectivity to Paradip and Dhamra ports. The initiative is expected to lower logistics costs, reduce congestion on roads and rail networks, and promote environmentally friendly transportation.

To support the growing inland waterways network, a ship repair ecosystem will be developed at Varanasi and Patna. These measures are expected to significantly boost Odisha’s mining, steel and manufacturing sectors and strengthen port-led development, positioning the state as a vital logistics hub in eastern India.

In addition, Sitharaman reiterated the Centre’s plan to establish dedicated rare-earth corridors in mineral-rich states such as Odisha, Kerala, Andhra Pradesh and Tamil Nadu. Building on the rare-earth permanent magnet scheme launched in 2025, the corridors will support mining, processing, research and manufacturing, reducing India’s dependence on imports and strengthening domestic supply chains.

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