World Bank lends US$ 375 mn for Ganga waterway

New Delhi: The Centre and the World Bank have signed a $375-million loan agreement for developing India’s first modern inland waterway on the Ganga between Varanasi and the Haldia port. The 1,360-km stretch is expected to bring economic development along the route, especially in logistics and transportation sectors.

The Centre and the World Bank have signed $375 million loan agreement for developing the country’s first modern inland waterway on the river Ganga between Varanasi and the Haldia port. The 1,360 km stretch is expected to bring economic development along the route, especially in the logistics and transportation sectors.

The loan will help the Inland Waterways Authority of India (IWAI) to put in place infrastructure and navigation services needed to develop National Waterway-1 (NW-1) as an efficient logistics artery for northern India, the World Bank said in a statement.

The statement claimed capacity augmentation under the Jal Marg Vikas Project would help save more than 150,000 tonnes of carbon dioxide equivalent to annual greenhouse gas emissions, by moving cargo away from the road and rail networks.

The water way, approved by the Union Cabinet last month, will go through Uttar Pradesh, Bihar, Jharkhand and West Bengal. The route goes through some of the most densely populated areas in the country, and a sizeable 40 per cent of domestically traded goods either originate from this rich region or are destined for its markets.

While the region generates about 370 million tonnes of freight annually, currently, only about 5 million tonnes are moved on water.

The project is expected to be completed by March 2023.

Once operational, the NW1 will be a part of the larger multi-modal transport network being planned along the Ganga. It will link with the eastern-dedicated rail freight corridor, as well as the area’s existing network of highways.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.