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Informist, Sunday, Feb. 1, 2026

--BUDGET: To focus on developing infra in tier-II, tier-III cities 

--BUDGET: To operationalise 20 new waterways over next 5 years 

--BUDGET: To connect mineral rich areas in Odisha via waterways 

--BUDGET: To set up training institutes to train youth for waterways 

--BUDGET: To set up ship repair ecosystem at Varanasi, Patna 

--BUDGET: To launch coastal cargo promotion scheme 

MUMBAI – In a bid to push development of infrastructure, the Centre aims to set up environmentally-sustainable seven high-speed rail passenger corridors and a freight corridor, Finance Minister Nirmala Sitharaman said in Parliament Sunday while presenting the Budget for 2026-27 (Apr-Mar). The finance minister also announced schemes to boost transport through waterways and seaplanes. The government will continue to focus on developing infrastructure in Tier-II and Tier-III cities--which have a population of over 500,000, the finance minister said. 

The seven high-speed rail routes or ‘growth connectors' will be between Mumbai and Pune, Pune and Hyderabad, Hyderabad and Bengaluru, Hyderabad and Chennai, Chennai and Bengaluru, Delhi and Varanasi, and between Varanasi and Siliguri. Sitharaman proposed central government support in six areas, of which one is "delivering a powerful push to infrastructure." The Budget also proposed a freight corridor connecting Dankuni in West Bengal to Surat in Gujarat. 

The Centre also aims to start 20 new national waterways over the next five years, Sitharaman said. The first waterway under this plan is National Waterway-5 in Odisha to connect mineral rich areas of Talcher and Angul and the industrial centre of Kalinga Nagar to the port towns of Paradeep and Dhamra, Sitharaman said. The Centre has proposed to set up training institutions to skill and train youth for manpower required to operate these waterways. These institutes will be set up as Regional Centres of Excellence, Sitharaman said. 

The government will establish a ship repair facility in Varanasi and Patna for inland waterways. The Centre aims to diversify reliance on rail and road, and increase transport through inland waterways and coastal shipping to 12% in 2047 from 6% now, Sitharaman said. The government proposes to do this through the Coastal Cargo Promotion Scheme.

The government will create city economic regions around tier II and tier III cities and temple towns to develop the infrastructure in these cities. Sitharaman announced an allocation of INR 5 billion for each city economic region for each such city across five years. These city economic regions will be based on the growth drivers of each city.

To promote tourism and improve connectivity in remote area, the government has proposed incentives to indigenously manufacture seaplanes. The government will support operations through the Seaplane viability gap funding scheme, the finance minister said.  End

Reported by Cassandra Carvalho

Edited by Pankaj Aher

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