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Cabinet approves Jal Marg Vikas Project for enhanced navigation on the Haldia-Varanasi stretch of National Waterway-1

The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Shri Narendra Modi has given its approval for implementation of the Jal Marg Vikas Project (JMVP) for capacity augmentation of navigation on National Waterway-1 (NW-1) at a cost of Rs 5369.18 crore with the technical assistance and investment support of the World Bank.  The Project is expected to be completed by March, 2023.

Major Impact:

  • Alternative mode of transport that will be environment friendly and cost effective. The project will contribute in bringing down the logistics cost in the country.
  • Mammoth Infrastructure development like multi-modal and inter-modal terminals, Roll on – Roll off (Ro-Ro) facilities, ferry services, navigation aids.
  • Socio-economic impetus; huge employment generation.

No. of beneficiaries:

  • NW-1 development & operations will lead to direct employment generation to the tune of 46,000 and indirect employment of 84,000 will be generated by vessel construction industry.

States/districts covered

  • States: Uttar Pradesh, Bihar, Jharkhand, West Bengal
  • Major Districts:   Varanasi, Ghazipur, Ballia, Buxar, Chhapra, Vaishali, Patna, Begusarai, Khagaria, Munger, Bhagalpur, Sahibganj, Musrhidabad, Pakur, Hoogly, Kolkata.

Project details:

  • Funding pattern:
  • IBRD loan component: Rs. 2, 512 crore (US$ 375 million).
  • Government of India counterpart funds: Rs. 2,556 crore (US$ 380 million), to be sourced from budgetary allocation and proceeds from bond issue.
  • Private sector participation under PPP mode: Rs. 301 crore (US$45 million).

Background:

  • One of the major problems for a commercially viable and safe navigation on NW-1 is low depth upstream of Farakka due to low discharges from tributaries and difficult hydro morphological characteristics of river Ganga.
  • A pilot study on the Allahabad-Ghazipur stretch was commissioned by Inland Waterways Authority of India (IWAI) to find solutions to this problem.
  • Based on the findings of this study, a proposal for development of NW-1 at an estimated cost of Rs. 4,200 crore (US$ 700 million) was taken up  for seeking technical assistance and investment support from the World Bank to the tune of US$ 350 million in three Phases.
  • Finance Minister announced JMVP in Budget Speech in July 2014, to enable commercial navigation of at least 1500 tonnes vessels in Ganga.Implementation strategy/ and targets:
    • Fairway development through performance based contract for least assured depth of 2.2 metres to 3 metres and bottom channel width of 45 metres, bank protection works, and provisions of navigation aids.

    Funding Pattern:

    • IBRD loan component: Rs. 2, 512 crore (US$ 375 million).
    • Government of India counterpart funds: Rs. 2, 556 crore (US$ 380 million), to be sourced from budgetary allocation and proceeds from bond issue.
    • Private sector participation under PPP mode: Rs. 301 crore (US$45 million).

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