The Inland Waterways Authority of India (IWAI) signed a project agreement with the World Bank, even as the latter entered into a $375-million loan agreement with the Department of Economic Affairs, Ministry of Finance for the Jal Marg Vikas Project (JMVP).
The signing of the agreement follows the approval of the Cabinet Committee on Economic Affairs for the implementation of the $800 million JMVP for capacity augmentation of navigation on National Waterway-1(River Ganga) from Varanasi to Haldia. Of the remaining amount, $380 million is to be sourced through the government of India counterpart funds from budgetary allocation and proceeds from the bond issue. Another $45 million will come from private sector participation under the PPP mode.
The JMVP, which is expected to be completed by March 2023, is being implemented with the financial and technical support of the World Bank. The project will enable commercial navigation of vessels with capacity of 1,500-2,000 tons on NW-I.
The National Waterway-1 project includes development of fairway, multimodal 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 the 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. It will also function as a link to Bangladesh, Myanmar, Thailand, Nepal and other East and South-East Asian countries through Kolkata Port and the Indo-Bangladesh Protocol Route.
