Sagarmala Project | Background
- India is bound by sea on three sides with 7th largest coastline in world.
- Whereas railways contribute 9% to GDP, road sector contributes 6%, ports’ share of GDP is only 1%! This contradiction reflects vast potential for development of coastal cities and ports.
- India suffers from poor port linkages, under performance of existing port infrastructure and lack of developed infrastructure near ports, for value addition of inbound or outbound merchandise.
- Along with this, an inefficient inter-modal transport connectivity results in high cost of logistics and exports.
- Government has therefore prioritized development of coastal cities, along with existing and new port development, as growth drivers.
Sagarmala Project | Shortcomings
- Unfortunately, India has not focused on developing coastal and port infrastructure in an integrated manner that would have realized its full potential.
- Today, most ports lack adequate cargo handling infrastructure.
- Ship turnaround time is poor compared to most other developed international ports.
- Loading-unloading processes are cumbersome.
- Rail and road connectivity to hinterland is inadequate.
- Industrial centers near port locations that can offer value addition are also lacking.
Sagarmala Project | Three Pillars
- Modernizing port infrastructure.
- Developing integrated transport infrastructure for connecting coast to hinterland.
- Current Infrastructure Scenario
Sagarmala Project | Integrated Development
- 12 smart cities to be developed near ports as integrated townships with affordable housing and green initiatives for sustainable living.
- 1,208 islands identified for development along with 189 light houses to boost both domestic and international tourism significantly.
- Coastal Economic Zones (CEZs), with modern support infrastructure and adequate fiscal incentives, to be established to give boost to economic activity near coastal locations. For instance, Kandla Port in Gujarat.
- Redevelopment of existing port infrastructure through upgrade in port handling equipment and extensive use of IT in improving monitoring and operations of port activity. For instance, Jawaharlal Nehru Port Trust.
- To identify suitable port locations with deep drafts to enhance shipping and port handling capacity.
- Specialised ports with focus on handling coal, energy, chemicals, commodities, etc., to be developed.
- Development and linking of short-sea shipping, coastal shipping and inland waterways transportation to get due attention.
- Further development of ship building, ship repair and ship recycling industry to also be a priority.
- Enhanced development of offshore drilling and storage platforms is another objective.
- Developing logistics parks and warehousing near coastal locations to support port activity.
- With long coastline, India offers great potential for developing offshore renewable energy and government has accorded due priority to attract investment in this area – power so generated will feed coastal activity and also contribute to national grid.
Sagarmala Project | National Perspective Plan
- To identify suitable geographical locations along coast to develop as CEZs.
- To synergise and integrate CEZs with various existing development initiatives like National Highways Development, Inland Waterways, Smart Cities, SEZs, Industrial Corridors and Dedicated Freight Corridors.
Sagarmala Project | Institutional Structure
- Apex level: Sagarmala Coordination and Steering Committee (SCSC) under chairmanship of Cabinet Secretary with Secretaries from Ministry of Shipping, Road Transport and Highways, Industrial Policy and Promotion, Environment, Forest & Climate Change, Revenue, Expenditure, Defence, Home Affairs, Chairman Railway Board and CEO of NITI Aayog.
- SCSC to ensure fund availability and oversee smooth coordination among various arms of central government and state governments and agencies.
- Federal structure: States to play a major role in implementing and facilitating development in their respective areas – State Sagarmala Committee (SSC) headed by Chief Minister or Minister in charge of Ports.
- To facilitate investments in CEZs and port development activities, government is open to set Special Purposes Vehicles (SPVs).
- Central government proposes to establish Sagarmala Development Company (SDC), under Companies Act 1956 to extend equity support to SPVs operating in various states.
Sagarmala Project | Proposed Ports
|West Bengal||Sagar Island|