Sagarmala loses steam as Budget 2026 slashes funding by 29%, new maritime schemes get priority

NEW DELHI : The government’s ambitious Sagarmala Programme, designed to transform India’s coastline into an economic powerhouse, has been dealt a blow in the Union Budget 2026-27.

Finance Ministry has slashed the scheme’s allocation by nearly 29 per cent, from Rs 866 crore in the original 2025-26 budget to just Rs 616.88 crore for the coming financial year (FY).

Launched to mobilise over Rs 5 lakh crore in infrastructure investment and double the share of inland and coastal waterways in cargo movement, Sagarmala now finds itself competing for shrinking resources even as newer schemes receive substantial backing.

Analysis of the Ministry of Ports, Shipping and Waterways budget documents reveals the programme has been on a downward trajectory.

After peaking at Rs 866 crore in the 2025-26 budget estimate, allocations were revised down to Rs 699 crore mid-year. The latest budget takes the cut even deeper, leaving Sagarmala with less than it received in actual expenditure during 2024-25 (Rs 658.29 crore).

What makes the squeeze particularly striking is the contrast with other maritime initiatives that received generous treatment.

The newly announced Maritime Development Fund walked away with Rs 1,000 crore, whilst shipbuilding support schemes secured Rs 515 crore and Rs 250 crore respectively for the coming FY.

Most dramatically, grants to the Inland Waterways Authority of India (IWAI) surged from a mere Rs 7 crore in the revised 2025-26 estimates to Rs 265 crore — a 37-fold increase.

The Sagarmala programme encompasses development of coastal communities, the National Maritime Heritage Complex, and infrastructure to promote cargo and passenger movement via sea and national waterways.

It also includes projects for minor ports development. However, despite these wide-ranging objectives, the scheme has struggled to secure consistent funding support.

The year’s budget speech emphasised coastal cargo promotion and announced 20 new national waterways over five years.

The programme’s reduced envelope will likely force project delays and scaling back, particularly in coastal infrastructure development where private investment has been slower to materialise than anticipated.

The budget documents show that revenue expenditure for Sagarmala dropped from Rs 634.47 crore in 2024-25 to Rs 576.88 crore in 2026-27, whilst capital expenditure rose modestly from Rs 23.82 crore to Rs 40 crore.

This suggests ongoing commitments are being maintained, but new project approvals may face severe constraints.

Source : Swarajya