Govt approves Rs5,369 crore waterway project on National Waterway-1

The government approved the Rs5,369 crore Jal Vikas Marg Project (JVMP) for enhanced navigation on the Haldia-Varanasi stretch of National Waterway-1 (NW-1).

The project falls in Uttar Pradesh, Bihar, Jharkhand, West Bengal and major districts under its ambit are Varanasi, Ghazipur, Ballia, Buxar, Chhapra, Vaishali, Patna, Begusarai, Khagaria, Munger, Bhagalpur, Sahibganj, Murshidabad, Pakur, Hooghly and Kolkata.

“The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi has given its approval for implementation of the Jal Marg Vikas Project (JMVP) for capacity augmentation of navigation on NW-1 at a cost of Rs 5,369.18 crore with the technical assistance and investment support of the World Bank,”

The project is expected to be completed by March 2023 and will provide an 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, the government said adding that it will boost infrastructure development like multi-modal and inter-modal terminals, roll on-roll off (Ro-Ro) facilities, ferry services, navigation aids.

“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,” the statement said. About the funding part, the government said International Bank for Reconstruction and Development (IBRD) loan component will be Rs2,512 crore ($375 million) while the Government of India counterpart funds will be to the tune of Rs2,556 crore ($380 million), to be sourced from budgetary allocation and proceeds from bond issue.

Private sector participation under public-private partnership (PPP) mode would be Rs301 crore ($45 million). Major components of the project are fairway development, construction of the multi-modal terminals at Varanasi, Sahibganj and Haldia besides construction of inter-modal terminals at Kalughat and Ghazipur and construction of a new navigation lock at Farakka.

Besides there will be a provision of navigational aids, construction of five pairs of roll on-roll off (Ro-Ro) terminals, construction of integrated ship repair and maintenance complexes and provision of River Information System (RIS) and Vessel Traffic Management System (VTMS).

The government said 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 the development of NW-1 at an estimated cost of Rs4,200 crore ($700 million) was taken up for seeking technical assistance and investment support from the World Bank to the tune of $350 million in three phases.


National Waterways Act 2016

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