Sagarmala | Over 400 projects to attract over Rs 8 lakh crore investment and generate 1 crore new jobs

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Sagarmala | Over 400 projects to attract over Rs 8 lakh crore investment and generate 1 crore new jobs
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Sagarmala | Over 400 projects to attract over Rs 8 lakh crore investment and generate 1 crore new jobs

07 Apr 2017
With the focus on promoting port-led-development in India, Rs 600 crore has been allocated for the Sagarmala programme in 2017-18. The flagship programme of the Ministry of Shipping, it encompasses capacity expansion and modernisation of ports along India’s coastline, enhancement of port connectivity to the hinterland, port led-industrialisation to promote trade, and sustainable development of coastal communities. As a senior official from the ministry shares, “Under this, over 400 projects have been identified, which are expected to mobilise investment of more than Rs 8 lakh crore and generate about 1 crore new jobs, including 40 lakh direct jobs, over a period of 10 years. These projects are expected to increase port capacity to over 3,000 mtpa by 2025 and generate annual logistics cost savings of close to Rs 35,000 crore.”
  • Estimated cost: Investment of over Rs 8 lakh crore (over 400 projects)
  • Increase in port capacity: Over 3,000 mtpa by 2025

Sagarmala focuses on the development of inland waterways for both passenger and freight transport to decongest existing road traffic. The concept of ‘port-led development’ is central to the Sagarmala vision with the thrust on logistics-intensive industries. The population in adjoining areas would have to be sufficiently skilled to avail of the economic opportunities on offer. The synergistic and coordinated growth of four components—logistics-intensive industries; efficient ports; seamless connectivity; and requisite skill-base—will lead to the unlocking of economic value and stimulate economic growth across sectors.

For the holistic growth of the Sagarmala programme, over 400 projects have been identified across the following areas:

  • Port modernisation and new port development: A total of 189 projects worth Rs 1.42 lakh crore have been identified for port modernisation and new port development. The master planning for 12 major ports has been finalised, under which 142 port capacity expansion projects (total cost: Rs 91,434 crore) have been identified for implementation over the next 20 years. Of this, 46 projects are already under implementation or awarded. Techno-economic feasibility report (TEFRs) have been finalised for six new port locations: Vadhavan, Enayam, Sagar Island, Paradip Outer Harbour, Sirkazhi and Belekeri. While the DPR has been prepared for Sagar Island port, the ones for Vadhavan, Paradip Outer Harbour Port and Enayam are under preparation. For major port operational efficiency improvement, 69 initiatives have been implemented and 80 mmtpa of port capacity has been unlocked so far.
  • Port connectivity enhancement: 170 port connectivity enhancement projects worth Rs 2.3 lakh crore have been identified. Twenty-seven rail connectivity projects have been identified, of which, 21 projects (~3300 km, total cost: Rs 28,000 crore) are being taken up by the Ministry of Railways and six projects (~151 km, total cost: Rs 3,590 crore) are to be taken up by through JV or NGR model. Seventy-nine road connectivity projects have been identified including 10 freight-friendly expressways, and 14 projects are already under implementation. DPR is under preparation for the heavy haul rail corridor between Talcher and Paradip. Five out of seven multimodal logistics parks are already under implementation.
  • Port-linked industrialisation: Thirty-three projects with an estimated investment of Rs 4.2 lakh crore have been identified for port-led-industrialisation. The perspective plans for 14 coastal employment zones (CEZs) covering all the maritime states and Union Territories have been prepared. The master plans will be prepared in a phased manner with four CEZs to be taken up in Phase 1. Twenty-nine potential port-linked industrial clusters have been identified across the energy, materials, discrete manufacturing and maritime sectors. Master plans have been prepared for maritime clusters proposed in Gujarat and Tamil Nadu. The ministry is also developing a SEZ at JNPT, a free trade warehousing zone at Ennore, and smart port industrial cities at Kandla and Paradip.

Coastal community development: Here, projects worth Rs 4,216 crore have been identified. Also, the ministry is part-funding select fishing harbour projects under Sagarmala in convergence with the Department of Animal Husbandry, Dairying & Fisheries (DADF), and over Rs 56 crore has been released for eight projects so far, across Karnataka, Kerala, Tamil Nadu and Maharashtra.

Projects worth Rs 1 lakh crore are already under various stages of implementation and development. More than Rs 390 crore has been released for 35 projects under Sagarmala, including unique and innovative projects such as a capital dredging project for the Gogha-Dahej RO-Pax ferry services project and RO-RO services project at Mandwa. A TEFR is under preparation for the development of an underwater viewing gallery and restaurant on Beyt Dwarka Island.

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