Sagar Mala project

The Sagarmala Programme is an initiative by the government of India to enhance the performance of the country's logistics sector. The programme envisages unlocking the potential of waterways and the coastline to minimize infrastructural investments required to meet these targets.[1][2] It entails investing Rs. 8.5 trillion (2018) to set up new mega ports, modernizing India's existing ports, developing of 14 Coastal Economic Zones (CEZs) and Coastal Economic Units, enhancing port connectivity via road, rail, multi-modal logistics parks, pipelines & waterways and promoting coastal community development, with the aim of boosting merchandise exports by US$110 billion and generating around 10,000,000 direct and indirect jobs. The Sagarmala Programme is the flagship programme of the Ministry of Shipping to promote port-led development in the country by exploiting India's 7,500 km long coastline, 14,500 km of potentially navigable waterways and its strategic location on key international maritime trade routes. Sagarmala aims to modernize India's Ports so that port-led development can be augmented and coastlines can be developed to contribute to India's growth. It also aims at "transforming the existing Ports into modern world-class Ports and integrate the development of the Ports, the Industrial clusters and hinterland and efficient evacuation systems through road, rail, inland and coastal waterways resulting in Ports becoming the drivers of economic activity in coastal areas."[3]

Sagarmala Project
CountryIndia
Prime Minister(s)Narendra Modi
MinistryMinistry of Shipping
Key peopleKailash Agarwal,Bhushan Kumar [Joint Secretary of Ministry Of Shipping,India] IRS(E)
Established31 July 2015 (2015-07-31)
StatusActive
Websitesagarmala.gov.in
India
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Background

The Sagarmala Programme was originally mooted by the National Democratic Alliance (India) government under Atal Bihari Vajpayee in 2003 as the maritime equivalent to the Golden Quadrilateral, another project under his government in the roads and highways sector. The Programme aimed to exploit India's vast coastlines and industrial waterways to drive industrial development.[4] It was approved by the cabinet in March 2015.[5]

The National Sagarmala Apex Committee (NSAC) is composed of the Minister of Shipping with Cabinet Ministers from stakeholder ministries and ministers in charge of ports in India's maritime states. The NSAC approved the overall National Perspective Plan (NPP) and regularly reviews the progress of implementation of these plans.[6][7]

To assist in the implementation of Sagarmala projects, the Sagarmala Development Company Limited (SDCL) was incorporated on 31 August 2016, after receiving Cabinet approval on 20 July 2016, for providing funding support to project SPVs and projects in-line with Sagarmala objectives. Additionally, SDCL is also in the process of preparation of Detailed Project Report (DPRs) and feasibility studies for specific projects that could provide avenues for future equity investment by the company. The Sagarmala Development Company was incorporated after approval from the Indian Cabinet on 20 July 2016 with an initial authorized share capital of Rs. 1000 Crore and subscribed share capital of Rs. 90 Crore, to give a push to port-led development.[8] The present subscribed share capital of SDCL is Rs. 215 Crore.

The Indian Port Rail Corporation Limited (IPRCL) was incorporated on 10 July 2015 to undertake the port-rail connectivity projects under Sagarmala Programme.

The Sagarmala National Perspective Plan was released by the Prime Minister on 14-April-2016[9] at the maiden Maritime India Summit 2016, with details on Project Plan and Implementation.[10]

The scheme

Components

Under Sagarmala Programme, 577 projects, at an estimated investment of approximately ₹8.570500 lakh crore (equivalent to ₹9.2 trillion or US$130 billion in 2019), have been identified across port modernization & new port development, port connectivity enhancement, port-linked coastal economic zone industrialization and coastal community development for phase wise implementation over the period 2015 to 2035. As per the approved implementation plan of Sagarmala scheme, these projects are to be taken up by the relevant Central Ministries/Agencies and State Governments preferably through private/PPP mode. The details are as below.

S. No.Project ThemeNo. of ProjectsProject Cost (Rs 10)
1.Port Modernisation245₹1,416,410 million (equivalent to ₹1.5 trillion, US$21 billion or €20 billion in 2019)
2.Connectivity Enhancement210₹2,444,640 million (equivalent to ₹2.8 trillion, US$39 billion or €36 billion in 2019)
3.Port-Linked Industrialisation57₹4,639,700 million (equivalent to ₹5.2 trillion, US$73 billion or €68 billion in 2019)
4.Coastal Community Development65₹69,760 million (equivalent to ₹79 billion, US$1.1 billion or €1.0 billion in 2019)
Total577₹8,570,500 million (equivalent to ₹9.7 trillion, US$140 billion or €120 billion in 2019)

[11]

As of 31-Mar-2018, a total of 492 projects (₹4.255630 lakh crore (equivalent to ₹4.6 trillion or US$64 billion in 2019)) were under various stages of implementation, development and completion.

Port-Modernization under Sagarmala

Since about more than 90% of India's trade by volume is conducted via the country's maritime route, there is a continuous need to develop India's ports and trade-related infrastructure to accelerate growth in the manufacturing industry and to assist the 'Make in India' initiative. India has 12 major ports and approximately 200 non-major ports administered by Central and State Governments respectively.

As per the studies conducted under the Sagarmala Programme, it is expected that by 2025, cargo traffic at Indian ports will be approximately 2500 million tonnes per year while the current cargo handling capacity of Indian ports is only 1500 million tonnes per year. A roadmap has been prepared for increasing the Indian port capacity to over 3500 million tonnes per year by 2025 to cater to the growing traffic. This includes port operational efficiency improvement, capacity expansion of existing ports and new port development.

Under Project Unnati, the global benchmarks were adopted to improve the efficiency and productivity KPIs for 12 major ports. Around 116 initiatives were identified across 12 major ports to unlock more than 100 MTPA capacity just through efficiency improvement. Out of which, 86 initiatives have been implemented to unlock around 80 MTPA capacity.

Mega Ports

Six megaports are planned in Sagarmala project.[12]

S.No. Location State Status
1. Sagar Island West Bengal DPR under preparation
2. Paradip Outer Harbour Odisha DPR under preparation.
3. Sirkazhi Tamil Nadu Techno Economic Feasibility Report(TEFR) prepared.
4. Kanniyakumari Tamil Nadu Major Transhipment Port at Kanniyakumari. SPV formed for the purpose - March, 2019.
5. Belikeri Karnataka Techno Economic Feasibility Report (TEFR) prepared.
6. Vadhavan Maharashtra DPR under preparation.

Port-linked Industrialization under Sagarmala

Coastal Economic Zones (CEZ) and Coastal Economic Units (CEU)
See also: Logistics in India

Coastal Economic Zones (CEZ) is an important component of the Sagarmala Programme aimed at port-led industrial development of 14 business-friendly Coastal Economic Zones (CEZ) with the investment of ₹4,639,700 million (equivalent to ₹5.2 trillion, US$73 billion or €68 billion in 2019), centered around ports in India spread across national coastline of 7,500 km, by using Make in India indigenous manufacturing scheme. Sectors targeted for manufacturing units are maritime and inland waterways, water transport, coastal and cruise shipping, and solar and wind energy generation, auto, telecom and IT, etc. Each CEZ will cover economic region consisting of several coastal districts with strong linkage to the ports in that region. Each CEZs will also create synergy with industrial corridors passing through the region, such as Delhi–Mumbai Industrial Corridor Project, Mumbai-Bangalore economic corridor, Dedicated Freight Corridor, Chennai Bangalore Industrial Corridor, Visakhapatnam–Chennai Industrial Corridor and Amritsar Delhi Kolkata Industrial Corridor, etc.[13][14][15][16]

Each CEZ will have several Coastal Economic Units (CEU), and in turn each CEU will have several Port-Linked Industrial Clusters (PLIC). "Coastal Employment Units" (CEUs) serve as nodes within CEZ, each CEU industrial is an industrial estates with multiple industries. Each "Port-Linked Industrial Clusters" (PLIC) within CEU will have several manufacturing units.[13][14][15]

Benefits include national GDP growth with ease of doing business by boosting export by US$100 billion, 150,000 job creation by 2025, reduction in export cargo logistics cost and time, and increased global competitiveness of Indian exports.[13][14][16]

List of CEZs proposed under the Sagarmala Programme

Total 14 CEZs are planned to be developed in phases across coastal India.[14]

Connectivity

Of the 51 ₹446 billion (equivalent to ₹480 billion, US$6.7 billion or €6.2 billion in 2019) port connectivity rail projects, 11 projects are already complete and rest are under execution.[17]

List of Port-Linked Industrial Clusters (PLIC)

Total 37 port-linked industrial clusters across several sectors:[14]

  • Discrete Manufacturing Cluster, total 23:
  • Petrochemical Cluster, total 4:
  • Power Cluster, total 4:
  • Steel Cluster, total 2:
  • Maritime Cluster, total 2:
  • Cement Cluster, total 2:

Other initiatives for promoting port-linked industrialization under Sagarmala

In November 2017, with the development of first Special Economic Zone centered around the busiest cargo ports in India that handles 40% of India's export-import volume, Jawaharlal Nehru Port east of Mumbai, was initiated. Several large companies from telecom, auto and IT sectors are expected to bid for the 200 hectares of export-oriented manufacturing units in the SEZ to reduce export logistics cost, thus also generating direct jobs by infusing new technology, investment and world's best management practices.

Further, development of Smart Industrial Port City (SIPC) at Paradip and at Kandla ports and Coastal Employment Units (CEUs) at V.O. Chaidambarnar Port Trust and Kamarajar Port Limited is under progress.

Port-connectivity enhancement under Sagarmala

Under Sagarmala Programme, the endeavor is to provide enhanced connectivity between the ports and the domestic production/consumption centres. More than 210 connectivity projects have been identified. Some of the types of connectivity projects considered are listed below:

  • Coastal Berths at various major and non-major ports
  • National waterways prioritized for development in the first phase
  • Heavy haul rail corridor from Talcher to Paradip
  • Connectivity to Dedicated freight corridors
  • Last mile rail and road connectivity projects
  • Major rail connectivity projects
  • Freight friendly Expressway projects connecting the major ports
  • Development of Multi-Modal Logistics Parks
  • POL Pipelines

The Government has taken various initiatives for promotion of Coastal Shipping such as dedicated Coastal Berths in Major Ports, financial assistance to State Government for Coastal Berth, concession in Cargo related and Vessel-related charges to the extent of 40%, encourage to Ro-Ro/Ropax services and offering 80% discount in Port charges and ease of customs procedures, etc.

Coastal Community Development under Sagarmala

Skill Development

Under Sagarmala Programme, an integrated approach is being adopted for improvement in quality of life with focus on skill building and training, upgrading of technology in traditional professions, specific and time-bound action plan for improving physical and social infrastructure in collaboration with the coastal states.

On the skill development front, the skill gap study of 21 coastal districts has been completed and domain ministries & concerned state governments have been asked to implement the district action plans. To address the skill gap in ports and maritime sector in these 21 coastal districts, the Ministry of Shipping will also be funding skill development under DDU-GKY to train 10,000 persons annually for next 3 years. Skill gaps survey for Kanyakumari and Palghar have been taken up under Sagarmala Programme. Under coastal district skilling programs in convergence with DDU-GKY, 1,917 candidates have been trained and 1,123 candidates have been placed.

Ministry is also funding the fire safety training project for workers at Alang-Sosiya Shipyard and the cutting-edge skills training project in Ports & Maritime Sector. So far 4,036 people have been trained. The course curriculum has been revised and updated to conform to the common norms for skill development schemes under National Skill Qualification Framework notified by the Ministry of Skill Development & Entrepreneurship. Indian Register of Shipping (IRS) is now conducting third-party assessments.

A world class, state of the art Centre of Excellence in Maritime and Shipbuilding (CEMS), first of its kind in Asia, a startup in skill development for maritime and shipbuilding sector with campuses at Vishakhapatnam and Mumbai was launched by Minister of Shipping on 17 November 2017. The cost of CEMS is ₹766 cr. out of which 87 % in-kind grant is being provided by Siemens. Siemens is also providing technology and expertise for the centre. Ministry of Shipping is providing a non-recurring one-time grant of ₹50.07 cr. for creation of 24 hi-tech labs (18 in Vishakhapatnam and 6 in Mumbai). Its capacity of training is 10,500 trainees per annum. The Centre is likely to be operational in May 2018.

A Multi-Skill Development Centre linked to JNPT is being set up in coordination with Ministry of Skill Development & Entrepreneurship.

The National Technology Centre for Ports, Waterways and Coasts (NTCPWC), at IIT Madras is being set up to study engineering issues related to ports, waterways, and coasts and in the country. NTCPWC will act as a technology arm of Ministry of Shipping for providing the needful technological support to Ports, Inland Waterways Authority of India (IWAI) and all other related institutions. The cost of setting up the centre is ₹70.53 cr. which is being shared by MoS, IWAI and the Major Ports. MoS's grant is towards capital expenditure for creating facilities like Field Research Facility (FRF), Sedimentation and Erosion Management Test Basin (SEMaTeB) and Ship/Tow Simulator. Memorandum of Agreement has been signed on 26.02.2018 between Ministry of Shipping and IIT Madras and Sh. Nitin Gadkari, Minister for Road Transport & Highways, Shipping and Water Resources, River Development & Ganga Rejuvenation laid foundation stone for setting up of NTCPWC at IIT Madras at Chennai.

Fisheries

Sagarmala Programme in coordination with related Central Ministries and State Governments would fund capacity building, infrastructure, and social development projects related to value addition in fisheries, aquaculture and cold chain development. As part of the coastal community development component of the Sagarmala Programme, Ministry is part-funding fishing harbour projects in convergence with Department of Animal Husbandry and Dairying (DADF).

Coastal Tourism

For promoting tourism in maritime states under Sagarmala, projects have been identified in convergence with Ministry of Tourism and tourism development departments of maritime state governments. Key coastal tourism projects include:

  • Development of Coastal Circuits under Swadesh Darshan Scheme of Ministry of Tourism
  • Development of infrastructure for promoting Cruise tourism
  • Development of lighthouses
  • National Maritime Heritage Museum Complex at Lothal
  • Underwater viewing gallery and restaurant at Beyt Dwarka
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See also
Similar rail development
Similar roads development
Similar ports and river transport development
Similar air transport development
General

References
  1. "Vision Ministry of Shipping, GOI, Government of India". SagarMala. 8 June 2018. Retrieved 1 November 2018.
  2. "SagarMala - Concept & Objectives Ministry of Shipping, GOI, Government of India". sagarmala.gov.in. Retrieved 1 November 2018.
  3. "Concept Note on Sagar Mala Project:Working Paper" (PDF). Ministry of Shipping, Government of India. Retrieved 4 July 2015.
  4. "All you wanted to know about Sagarmala". The Hindu BusinessLine. Retrieved 1 November 2018.
  5. "Cabinet gives 'in principle' nod to concept of Sagarmala project". Economic Times, Times of India. 27 March 2015.
  6. "Sagarmala: Concept and implementation towards Blue Revolution". Press Information Bureau. 25 March 2015.
  7. India, Ministry of Shipping, Government of. "Ministry of Shipping, Government of India". shipmin.nic.in.
  8. "Nod to Sagarmala Development Company with Rs 1,000 crore authorised share capital - The Economic Times". Economictimes.indiatimes.com. 20 July 2016. Retrieved 1 November 2018.
  9. "Sagarmala National Perspective Plan Released". pib.nic.in.
  10. http://pibphoto.nic.in/documents/rlink/2016/apr/p201641402.pdf
  11. "Sagarmala Programme". pib.nic.in.
  12. "Sagarmala Programme". pib.nic.in. Retrieved 25 April 2017.
  13. "Decks cleared for first mega CEZ; 45 companies may invest Rs 15k-crore in phase-I.", Economic Times, 1 November 2017.
  14. "Sagarmala: Port-led industrialization.", Government of India.
  15. "The A to Z of coastal economic zones.", Deccan Chronicle, 17 February 2016.
  16. "Sagarmala Project proposes 14 coastal economic zones across India.", First Post, 29 November 2016.
  17. Projects worth Rs 44.6k crore underway for rail connectivity to ports, Economic Times.
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