The Inland Waterways Authority of India (IWAI) has signed a project agreement with the World Bank for Jal Marg Vikas project (JVMP).

The World Bank has also entered into a USD 375 million loan agreement with the Department of Economic Affairs.

The Cabinet Committee on Economic Affairs has given approval for the implementation of USD 800 million JMVP for capacity augmentation of navigation on National Waterway-I NW-I (River Ganga) from Varanasi to Haldia.

Out of the remaining amount, USD 380 million is to be sourced through the government of India counterpart funds from budgetary allocation and proceeds from the bond issue.

Another USD 45 million will come from private sector participation under the public-private partnership (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 the capacity of 1500-2,000 tonne on NW-I.

The development and operations of the National Waterway-1 project will generate 46,000 direct jobs and 84,000 indirect jobs in Uttar Pradesh, Bihar, Jharkhand, and West Bengal.

The project envisages development of fairway, multi-modal terminals at Varanasi, Haldia and Sahibganj, strengthening the river navgation 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.