Sagarmala Programme Highlights

SAGARMALA PROGRAMME

Sagarmala Programme is an ambitious national level initiative of Ministry of Shipping aimed at bringing about a step change in India’s logistics sector performance, by unlocking the full potential of India’s coastline and waterways. It is a first-of-its-kind programme with comprehensive plan for the overall development of the maritime sector and Indian economy.

Vision of the Sagarmala Programme is to reduce logistics cost for EXIM and domestic trade with minimal infrastructure investment. Objectives of the programme are port modernization & new port development, port connectivity enhancement, port-linked industrialization and coastal community development. It’s based on the vision of port-led development, focusing on logistics intensive industries. Sagarmala aspires to reduce logistics costs for EXIM and domestic cargo leading to overall cost savings of INR 35,000 to 40,000 Cr per annum.

National Perspective Plan With the concept approved by the Cabinet on 25thMarch 2016, the Sagarmala Programme is now moving from the conceptualization and planning to the implementation stage. The National Perspective Plan (NPP), for the comprehensive development of India’s coastline and maritime sector, has been prepared and was released at the maiden Maritime India Summit 2016, on 14thApril, 2016, by the Hon’ble Prime Minister.

Projects under Sagarmala As part of Sagarmala, more than 400 projects, at an estimated infrastructure investment of more than Rs. 7 Lac Crore, have been identified. These projects will be implemented by relevant Central Ministries, State Governments, Ports and other agencies primarily through the private or PPP mode.

Besides projects being undertaken by different agencies, Rs. 243 Cr has been released so far for 14 projects considered for funding under Sagarmala in FY 15-16 & FY 16-17 by the Ministry of Shipping.

Unique and innovative projects are being funded under Sagarmala. In this regard, Rs. 58.5 Cr has been released as first instalment of capital dredging project for starting RO-Pax Ferry Services between Gogha and Dahej. Similarly, Rs 43.76 Cr has been released for development of breakwater and Ro- Ro Ferry services between Mandwa and Mumbai. Project development of underwater viewing gallery and restaurant at BeytDwarka Island is under preparation

Ministry of Shipping has also set up the Sagarmala Development Company (SDC) for providing equity equity support to residual projects under Sagarmala. SDC was incorporated on 31st August 2016, after receiving Cabinet approval on 20th July 2016,

Port Modernization & New Port Development Master Plans have been finalized for the 12 major ports. Based on the same, 142 port capacity expansion projects (total investment: Rs. 91,434 Cr) have been identified for implementation over the next 20 years. Out of this, 30 projects (total investment: Rs. 11,612 Cr) have been proposed for implementation starting FY 16-17.

In addition, 6 new port locationshave been identified and will be developed – Vadhavan, Enayam, Sagar Island, Paradip Outer Harbour, Sirkazhi, and Belekeri.

Port Connectivity Enhancement Indian Port Rail Corporation Limited (IPRCL) set up to take up last mile rail connectivity projects for the ports have taken up 25 works across 9 major ports. Out of this, 4 works have already been awarded and 9 more are targeted for award in remaining part of FY 16-17. DPR is under preparation / approval for the remaining 12 works.

Out of the final list of 27 rail connectivity projects identified under Sagarmala, 21 projects (~3300 Km, total investment: Rs. 28,000 Cr) are being taken up by Ministry of Railways and 6 projects (~151 Km, total investment: Rs. 3,590 Cr) are to be taken up either in Non–Government Rail (NGR) or JV model through Indian Port Rail Corporation Limited.

Seventy nine road connectivity projects have been identified under Sagarmala and will be taken up by MoRTH/NHAI/Ports, including 18 projects under Bharatmala scheme. Out of this, select road connectivity projects will be part-funded under Sagarmala (including DPR preparation).

Scope of the Coastal Berth Scheme has been expanded. The scheme was also integrated into the Sagarmala Programme. 5 projects have been sanctioned (Rs. 70 Cr released) and 27 proposals are under consideration.

An Inter-Ministerial Committee (IMC) has also been constituted to develop a strategy and implementation roadmap for the coastal shipping of coal and other commodities/product. Based on the recommendations of the IMC, DPR is under preparation for the heavy haul rail corridor between Talcher & Paradip.

Port-linked Industrialization 14 CEZs have been identified as part of the NPP, as part of port-linked industrialization objective of Sagarmala Programme. CEZ perspective plans have been prepared and shared with the relevant Central Ministries, State Governments and other stakeholders for comments / inputs. Five pilot Coastal Economic Unit locations have been identified at Gujarat, Maharashtra, Odisha, Andhra Pradesh and near Ennore in Tamil Nadu.

29 potential industrial clusters have been identified, based on detailed OD study of key commodities, across the following sectors – Energy, Materials, Discrete Manufacturing and Maritime. Draft master plans for the proposed Maritime Clusters in Gujarat and Tamil Nadu have been prepared.

Coastal Community Development As part of the coastal community development objective of the Sagarmala Programme, the Ministry of Shipping is taking up a number of initiatives/projects. Notable among them are the coastal community skilling projects and infrastructure projects for development of fisheries sector.

Skill gap study: Ministry of Shipping is currently undertaking the Skill gap analysis study in 23 coastal districts across all Maritime States, with special emphasis on skill requirements in the Ports & Maritime Sector. Projects identified through the study will be funded under Sagarmala.

Skill development: As part of the projects funded under Sagarmala, Rs. 10 Cr has been released as first instalment for the fire safety training project for workers at Alang-Sosiya Shipyard. Rs. 6.9 Cr has been released as first instalment for Phase I of the project for skill training in 27 coastal districts in convergence with DDU-GKY. Ministry will also be conducting cutting-edge skill training in the ports & maritime sector at 4 locations across India and is evaluating the proposal for setting up Multi-Skill Development Centre off JNPT to provide skill training for Port & Port User Community.

Fisheries projects: Ministry of Shipping, in collaboration with the Department of Animal Husbandry, Dairying & Fisheries (Ministry of Agriculture), will fund fishing harbour projects under the Sagarmala Programme (50 per cent of Central Government’s share). As part of this, Sassoon Dock modernization project has been approved and the first instalment of Rs. 6.52 Cr has been released.

In-principle approval has been obtained for upgrading the fishing harbours at Veraval and Mangrol and 7 additional projects have been identified by Ministry of Agriculture for a total funding support of Rs. 50 Crore.