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Government approves Rs 5369 crore waterway project on National Waterway-1

By
AC Team 1
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On January 3, 2017, Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi gave its approval for implementation of the Jal Marg Vikas Project (JMVP) at a cost of Rs 5369 crore

Jal Marg Vikas Project (JMVP) – Objective & Expected Benefits:

This project is geared towards capacity augmentation of navigation on the Haldia-Varanasi stretch of National Waterway-1 (NW-1). 
NW1

  • The project is spread across four states viz. Uttar Pradesh, Bihar, Jharkhand, West Bengal. It will directly benefit industries located in Varanasi, Ballia, Ghazipur, Buxar, Vaishali, Chhapra, Patna, Begusarai, Khagaria, Munger, Bhagalpur, Sahibganj, Musrhidabad, Pakur, Hoogly and Kolkata.
  • Fairway development, construction of inter-modal terminals at Kalughat and Ghazipur, construction of the multi-modal terminals at Varanasi, Sahibganj and Haldia and construction of a new navigation lock at Farakka are the main components of this project.
  • The project also envisages construction of five pairs of Roll on-Roll off (Ro-Ro) terminals, navigational aids, construction of Integrated Ship Repair and Maintenance Complexes, Vessel Traffic Management System (VTMS) and provision of River Information System (RIS).
  • Over 46000 direct employment opportunities and 84000 indirect employment opportunities (in vessel construction industry) will be generated during the course of execution of this project.
  • World Bank is providing technical and financial assistance for this project.
  • The project is expected to be completed by March, 2023. On completion, it would enable commercial navigation of vessels with a capacity of 1500-2000 DWT.
  • This will serve as an alternative mode of transport which will be environment friendly and cost effective.

Jal Marg Vikas Project (JMVP) – Funding Components:

Rs 2512 crore will come as a loan component from International Bank for Reconstruction and Development, a member institution of World Bank Group.

  • Rs 2556 crore will be sourced by Government of India through budgetary allocation and proceeds from bond issue.
  • Private sector participation under Public-Private Partnership (PPP) mode would be Rs 301 crore.