Sagar Mala project

The Sagarmala Programme (transl.Garland of the sea) 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]

Sagarmala Project
MottoPort-led prosperity
CountryIndia
Prime Minister(s)Narendra Modi
MinistryMinistry of Ports, Shipping and Waterways
Key peopleBhushan Kumar, Joint Secretary
Established31 July 2015 (2015-07-31)
StatusActive
Websitewww.sagarmala.gov.in

It entails investing 8.5 trillion (equivalent to 11 trillion, US$140 billion or €140 billion in 2023) (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 million direct and indirect jobs.

The Sagarmala Programme is the flagship programme of the Ministry of Ports, Shipping and Waterways to promote port-led development in the country by exploiting India's 7,517 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]

Background

The Sagarmala Programme was originally mooted by the National Democratic Alliance 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 1,000 crore and subscribed share capital of ₹90 crore, to give a push to port-led development.[8] The present subscribed share capital of SDCL is ₹215 crore.

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

Sethusamudram Corporation Ltd is also a participant public sector enterprise in this project.

Inland & Coastal Shipping Ltd. (ICSL), SCI’s wholly owned subsidiary was incorporated in 2016 after Maritime India summit for undertaking/providing transport services through Inland waterways, coastal shipping and end to end logistics. ICSL and IWAI signed a historic Memorandum of Understanding on 22 Jan’21 for operations and management of three IWAI cargo vessels i.e. MV Rabindranath Tagore, MV Lal Bahadur Shastri and MV Homi Bhabha. MV Rabindranath Tagore & MV Lal Bahadur Shastri have been taken over by ICSL on 22 Jan’21 and 26 Feb’21 respectively.

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 11 trillion or US$140 billion in 2023), 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.

Project ThemeNo. of ProjectsProject Cost (Rs 10)
Port Modernisation2451,416,410 million (equivalent to 1.9 trillion, US$24 billion or €23 billion in 2023)
Connectivity Enhancement2102,444,640 million (equivalent to 3.4 trillion, US$43 billion or €42 billion in 2023)
Port-Linked Industrialisation574,639,700 million (equivalent to 6.5 trillion, US$82 billion or €80 billion in 2023)
Coastal Community Development6569,760 million (equivalent to 98 billion, US$1.2 billion or €1.2 billion in 2023)
Total5778,570,500 million (equivalent to 12 trillion, US$150 billion or €150 billion in 2023)

[11]

Progress

As of 31 March 2018, a total of 492 projects (4.255630 lakh crore (equivalent to 5.7 trillion or US$71 billion in 2023)) were under various stages of implementation, development and completion.

As of 2021, only 172 projects out of the 802 sanctioned have been completed and the remaining 632 projects are under the implementation stage. Of these, only 13 out of 98 road connectivity projects to ports have been completed and 28 out of 91 rail connectivity projects.

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.

New Greenfield Mega Ports

Six megaports are planned in Sagarmala project.[12]

Location State Status
Sagar Port West Bengal DPR under preparation.
Paradip Outer Harbour Odisha DPR under preparation.
Sirkazhi Tamil Nadu Techno Economic Feasibility Report(TEFR) prepared.
Kanyakumari Tamil Nadu Major Transhipment Port at Kanyakumari. SPV formed for the purpose - March 2019.
Machilipatnam Port Andhra Pradesh Machilipatnam Port is a proposed deep sea port on the coast of the Bay of Bengal. It is located at Machilipatnam, the District Headquarters of Krishna district in the Indian state of Andhra Pradesh.
Ramayapatnam Port Andhra Pradesh DPR completed
Galathea Bay Transhipment Port Nicobar DPR completed
Belikeri Karnataka Techno Economic Feasibility Report (TEFR) prepared.
Vadhvan Maharashtra DPR under preparation.

There are also Private ports under construction/reopening

Location State Status
Bhavnagar CNG Terminal Gujarat On 28 September 2022 the foundation stone of the CNG terminal was laid. The development of CNG Terminal and other terminals occurred at the north-side of existing Bhavnagar Port. In December 2019, a consortium led by Foresight Group, which also involved Mumbai-based Padmanabh Mafatlal Group and Rotterdam-based Boskalis, signed a Memorandum of Understanding (MoU) with Gujarat Maritime Board (GMB) for the development of the CNG terminal. A special purpose vehicle, Bhavnagar Port Infrastructure Pvt Ltd, was formed by the consortium to operate the port.
Simar port Chhara,Gujarat Completion target 2024
JSW Salav port Salav, Maharashtra Expansion of existing Salav jetty facility from present 235 m jetty length and 21m mooring dolphin by adding additional jetty length of 500 m to handle cargoes from present 3.0 MPTA to 31.0 MPTA[13]
Jaigarh LNG Terminal Jaigarh, Maharashtra India’s first floating storage and regasification unit (FSRU) Höegh Giant has arrived at H-Energy’s Jaigarh terminal in Maharashtra ahead of its commissioning in the coming weeks.[14]
Kakinada Gateway Port[15][16] Andhra Pradesh under construction, Kakinada Gateway Port (KGPL), an arm of Kakinada SEZ, has entered into concession agreement with the Andhra Pradesh government for development of a greenfield commercial port at Kona village in East Godavari district.Kakinada SEZ (KSEZ) is promoted by GMR Infrastructure limited.
Konkan LNG Terminal Dabhol, Maharashtra India gets first US LNG shipment at Dabhol GAIL is the majority owner of Konkan LNG Pvt Ltd, the firm which will run the 5 million tonnes a year LNG receipt facility.[17]
Tajpur Port West Bengal DPR under preparation
Vizhinjam International Seaport Kerala Under construction.

Coastal Economic Zones (CEZ) and Coastal Economic Units (CEU)

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 6.5 trillion, US$82 billion or €80 billion in 2023), 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.[18][19][20][21]

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.[18][19][20]

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.[18][19][21]

List of CEZs proposed under the Sagarmala Programme

Total 14 CEZs are planned to be developed in phases across coastal India.[19]

  1. Kachch CEZ
  2. Saurashtra CEZ
  3. Suryapur CEZ
  4. North Konkan CEZ
  5. South Konkan CEZ
  6. Dakshin Kanara CEZ
  7. Malabar CEZ
  8. Mannar CEZ
  9. Poompuhar CEZ
  10. VCIC South CEZ
  11. VCIC Central CEZ
  12. VCIC North CEZ
  13. Kalinga CEZ
  14. Gaud CEZ

Connectivity

Of the 51, 44,600 crore (equivalent to 600 billion, US$7.5 billion or €7.3 billion in 2023) port connectivity rail projects, 11 projects are already complete and rest are under execution.[22]

List of Port-Linked Industrial Clusters (PLIC)

Total 37 port-linked industrial clusters across several sectors:[19]

  • 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

Coastal community development under Sagarmala

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

See also

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. 24 May 2016. 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.{{cite web}}: CS1 maint: multiple names: authors list (link)
  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. https://environmentclearance.nic.in/writereaddata/Online/EDS/01_Apr_2017_1141463105I7UNU3UFormIJSWSalavPort.pdf
  14. "India's first FSRU arrives at H-Energy's Jaigarh terminal". 7 March 2022.
  15. "New seaport proposed at Kona village in EG district of AP". The Times of India. 21 November 2018. ISSN 0971-8257. Retrieved 1 August 2023.
  16. "Kakinada Gateway Port inks concession agreement to develop commercial port". The Times of India. 21 November 2018. ISSN 0971-8257. Retrieved 1 August 2023.
  17. "India gets first US LNG shipment at Dabhol". The Economic Times. 30 March 2018.
  18. "Decks cleared for first mega CEZ; 45 companies may invest Rs 15k-crore in phase-I.", Economic Times, 1 November 2017.
  19. "Sagarmala: Port-led industrialization.", Government of India.
  20. "The A to Z of coastal economic zones.", Deccan Chronicle, 17 February 2016.
  21. "Sagarmala Project proposes 14 coastal economic zones across India.", First Post, 29 November 2016.
  22. Projects worth Rs 44.6k crore underway for rail connectivity to ports, Economic Times.
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