26% cost escalation for NW-1 development project cost

The natinal Waterways 1 development, part of Jal Marg Vikas Project (JMVP), has seen cost escalation of 26 per cent to Rs 5,396 crore from its initial estimates of Rs 4,200 crore.
"The initial project cost of Rs 4,200 crore was envisaged based on theoretical knowledge and without much study on the ground. But based on detailed study the project cost for NW-1 is now been projected at Rs 5,396 crore," Inland Waterways Authority of India (IWAI) vice-chairman Pravir Pandey said.
World Bank, which is supporting with 50 per cent cost, had approved the revised project cost.
Pandey has said IWAI has already placed order worth around Rs 2000 crore out of total Rs 5396 crore for the JMVP.

"We have placed work order for 40 per cent of the total project and now we will place demand for World Bank loan," he said.
The work order has been placed for Sahebgunj and Varanasi multi-modal terminals, Haldia and Farraka lockgate, IWAI director M K Saha said.

IWAI is the nodal agency for the project.
In order to infuse vibrancy to the project, IWAI was also acquiring new designed vessels worth Rs 600- 700 crore to procure 60-70 shallow vessels of different categories, passenger ferry, LNG and cargo that can navigate smoothly in low drafts stretches along the NW-1 corridor.

These will be designed by DST, Germany, to suit navigation in the 1620 km stretch of the NW-1 boosting environment-friendly, safe and economic mode of transportation through this highway.
IWAI has decided to raise Rs 1000 crore by way of infra bond in two tranches of Rs 500 crore each in December and February, 2017, its officials said.