IWAI engages KPMG as consultant for asset management under Jal Marg Project

The Inland Waterways Authority of India (IWAI) has engaged KPMG for asset management under Jal Vikas Marg project, the government said today.
"The IWAI has engaged KPMG, a reputed consultant, to study and devise a framework for operationalisation and maintenance of the assets being built on National Waterway 1 ( NW-1) under the World Bank funded Jal Marg Vikas Project (JMVP)," the ministry of shipping said in a statement.
This framework will include various institutional and operational models ranging from outsourcing to Special Purpose Vehicle (SPV) formulation with participating states and other authorities like railways and ports, it said.
The Cabinet Committee on Economic Affairs had approved the implementation of the Jal Marg Vikas Project for capacity augmentation of navigation on the Haldia-Varanasi stretch of NW-1 (Ganga) on January 3.

The assets being procured and built under JMVP will be ready by 2018-19, it said, adding that optimum and sustainable utilisation of assets so developed, would not be achievable without an asset management and operation framework.
The government said the consultant will also help in developing the business plan for market development on NW-1 for suitable cost recovery and tariff realisation mechanism.

In addition, it will assess to develop a plan for multimodal logistics park near the multimodal terminals being built under at Varanasi, Sahibganj and Haldia.
These multimodal logistics parks will act as freight aggregation and disaggregation centres and promote a hub-and-spoke model of freight movement.

Other broad scope of the study will include gathering market intelligence and reviewing cargo potential and cargo projections, developing a business and execution plan for marketing and commercial development and organise roadshows to generate investment awareness in PPP projects.
The JMVP is being implemented by the IWAI with technical assistance and investment support of the World Bank. The project is expected to boost the Inland Waterway Transport on NW-1, create/improve integration opportunities with road and rail transport, promote economic growth in the states of Uttar Pradesh, Bihar, Jharkhand & West Bengal and facilitate inland waterway connectivity between mainland India and North-Eastern States.

The statement said the development and operations of the NW-1 is estimated to create direct employment of 46,000 persons and indirect employment of 84,000 persons in Uttar Pradesh, Bihar, Jharkhand and West Bengal.