IWAI inks project agreement with World Bank for Jal Marg Vikas Project on Ganga

• Inland Waterways Authority of India (IWAI) signed a project agreement with the World Bank of US $ 375 million loan agreement with the Department of Economic Affairs.

Background-

• The signing of the Agreement follows the approval of the Cabinet Committee on Economic Affairs, for the implementation of the US $ 800 million JMVP for capacity augmentation of navigation on National Waterway-1(River Ganga) from Varanasi to Haldia.
• Out of the remaining amount, US $ 380 million is to be sourced through the Government of India counterpart funds from budgetary allocation and proceeds from the bond issue.
• Another US $ 45 million will come from private sector participation under the PPP mode.

About Jal Marg Vikas Project

• The Jal Marg Vikas Project (JMVP) on NW-1 is being implemented with the financial and technical support of the World Bank. The Project entails development of fairway with 3 meters depth between Varanasi and Haldia (Phase-I) covering a distance of 1380 km at an estimated cost of Rs. 5369 crore with target for completion in six years. The following sub-projects of this Project have commenced:
• Construction of Phase – I (A) of the multimodal terminal at Varanasi at a cost of Rs. 169.70 crore.
• Construction of Phase – I of the multimodal terminal at Sahibganj at a cost of Rs. 280.90 crore.
• Construction of new navigation lock at Farakka at a cost of Rs. 359.19 crore.
• Projects worth Rs.1871.56 crore for development of National Waterways have been implemented till March 2016 from the inception of IWAI in October, 1986. National Waterway-1 (NW-1), NW-2 & NW-3 have been developed for shipping and navigation during this period.

Analysis-

• The project will enable commercial navigation of vessels with the capacity of 1500-2,000 tons on NW-I.
• The development and operations of the National Waterway-1 project will lead to direct employment generation to the tune of 46,000 and indirect employment of 84,000 in the states of Uttar Pradesh, Bihar, Jharkhand, West Bengal.
• The project includes development of fairway, Multi-Modal Terminals at Varanasi, Haldia and Sahibganj, strengthening the river navigation system, conservancy works, modern River Information System (RIS), Digital Global Positioning System (DGPS), night navigation facilities, modern methods of channel marking, construction of a new state-of-the-art navigational lock at Farakka etc.
• The JMVP will result in an environment-friendly, fuel-efficient and cost-effective alternative mode of transportation, especially for bulk goods, hazardous goods and over-dimensional cargo.
• The National Waterway-1 along with proposed Eastern Dedicated Freight Corridor and National Highway-2, constitutes the Eastern Transport Corridor of India connecting the National Capital Region (NCR) with the eastern and north-eastern states and will function as a link to Bangladesh, Myanmar, Thailand, Nepal and other east and south-east Asian countries through the Kolkata Port and Indo- Bangladesh Protocol Route.

By: Vishal