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

New Delhi: 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).

• Major Components:

	Fairway Development
	Construction of the multi-modal terminal at Varanasi.
	Construction of the multi-modal terminal at Sahibganj.
	Construction of the multi-modal terminal at Haldia.
	Construction of an inter-modal terminal at Kalughat .
	Construction of an inter-modal terminal at Ghazipur.
	Construction of a new navigation lock at Farakka.
	Provision of navigational aids.
	Construction of five pairs of Roll on-Roll off (Ro-Ro)  terminals.
	Construction of Integrated Ship Repair and Maintenance Complexes.
	Provision of River Information System (RIS) and Vessel Traffic Management System (VTMS)
	Bank Protection works

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.

BACKGROUNDER NOTE

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).

Major interventions and their completion timeline:

S.No	Major milestones	Time Frame for completion/ Target date
1.	Fairway Development	March, 2023
2.	Construction of Phase-I of multi-modal terminal at Varanasi.	November, 2018
3.	Construction of Phase-I of the multi-modal terminal at Sahibganj.	March, 2019
4.	Construction of multi-modal terminal at Haldia.	March, 2019
5.	Construction of inter-modal terminal at Kalughat.	March, 2020
6.	Construction of inter-modal terminal at Ghazipur.	March, 2020
7.	Construction of intermodal terminal at Tribeni/Kalyani	March, 2020
8.	Construction of new navigational lock at Farakka.	March, 2019.
9.	Integrated Vessel Repair & Maintenance Complexes	March, 2020
10.	Construction of Ro-Ro jetties	March, 2020
11.	Vessel Procurement	March, 2019
12.	Land Acquisition and R&R/RAP	March,2019
13.	Provision of River Information System (RIS) and Vessel Traffic Management System (VTMS).	March, 2020
14.	Bank protection works.	December, 2019

Details and progress of scheme already running:

1. Construction of multi-modal terminal at Varanasi:

Contract for construction of Phase-I (A) of the terminal at an estimated cost of Rs.169.59 crore awarded in May, 2016. Physical progress of work: 25%.

2. Construction of multi-modal terminal at Haldia:

Contract awarded for constructing a Rs 517.36 crore state-of-the-art multi-modal terminal at Haldia, West Bengal. Work initiated.

3. Construction of multi-modal terminal at Sahibganj:

Contract for construction of phase-I (A) of the terminal at an estimated cost of Rs. 280.90 crore awarded in October, 2016. Physical progress of work: 25.62%

4. Construction of a new navigation lock at Farakka Barrage:

Contract for construction of a new navigation lock at an estimated cost of Rs 359.19 crore awarded in November, 2016. Physical progress: 22.30%

5. Least Assured Depth (LAD):

Tender process for fairway development through Performance Based Maintenance Dredging Contract for Provision of Least Assured Depth and quantity based dredging to provide a depth of 2.2 m to 3 metres between Farakka and Varanasi is being completed for awarding.

6. Development of Kolkata and Patna terminals under PPP mode:

In order to scale up private investment in the IWT sector, IWAI has identified Kolkata terminal (GR Jetty-1, GR Jetty-II and BISN) and Patna terminal (Gaighat and Kalughat) for their development and operation under the Public-Private-Partnership (PPP) mode.

7. Construction of Ro-Ro terminals: Locations: Rajmahal and Manikchak;Samdaghat and Manihari;Kahalgaon and Tintanga;Hasnapur and Bakhtiyarpur; and Buxar and Saraikota.

8. Ferry terminals in six cities :

Contract awarded to a joint venture of Thompson Design Group (TDG), Boston (USA) and Infrastructure Architecture Lab of Massachusetts Institute of Technology (MIT) (USA) in December 2016 for identifying suitable locations for construction of ferry terminals in six cities – Varanasi, Patna, Bhagalpur, Munger, Kolkata and Haldia on NW-1.

1. Design of inland vessels:

IWAI in August, 2016 signed a contract with M/s DST, Germany to design vessels, especially suited to navigate on NW-1. Consultancy completed with submission of stipulated 13 designs. Designs accepted by the Vetting Committee. Vessel testing is going on.

10. River Information Services (RIS) on National Waterway -1:

IWAI has taken up a technologically challenging project of setting up of River Information Service System on NW-1 for the first time in India. River Information System (RIS) are equipment, hardware and software information technology (IT) related services designed to optimize traffic and transport processes in inland navigation.