Inland Waterways Authority of India (IWAI) on February 2, 2018 signed a project agreement with the World Bank for Jal Marg Vikas Project on river Ganga.
World Bank entered into a USD 375 million loan agreement with the Department of Economic Affairs, Union Ministry of Finance for Jal Marg Vikas Project (JMVP).
Funding of the Jal Marg Vikas Project
The signing of the project agreement follows the approval of the Cabinet Committee on Economic Affairs for the implementation of the USD 800 million JMVP for capacity augmentation of navigation on National Waterway-1 (River Ganga) from Varanasi to Haldia.
Out of the remaining amount, USD 380 million is to be sourced through the Union Government counterpart funds from budgetary allocation and proceeds from the bond issue. Another USD 45 million will come from private sector participation under the PPP mode.
Jal Marg Vikas Project, which is expected to be completed by March 2023, is being implemented with the financial and technical support of the World Bank.
Jal Marg Vikas Project (JMVP)
• The Jal Marg Vikas Project aims to enable commercial navigation of vessels with the capacity of 1500 - 2000 tons on National Waterway-1.
• The development and operations of the National Waterway-1 project will lead to direct employment generation to the tune of 46000 and indirect employment of 84000 in the states of Uttar Pradesh, Bihar, Jharkhand, West Bengal.
• The project includes development of fairway, Multi-Modal Terminals at Varanasi, Haldia and Sahibganj, strong river navigation system, modern River Information System (RIS), Digital Global Positioning System (DGPS), night navigation facilities, construction of a navigational lock at Farakka.
• The National Waterway-1 along with proposed Eastern Dedicated Freight Corridor and National Highway-2 constitutes the Eastern Transport Corridor of India connecting the NCR with the eastern and north-eastern states.
• This waterway 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.
• 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.
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