Incorporated in 2016, the Sagarmala Development Company Ltd (SDCL), which is under the administrative control of the Ministry of Shipping, focuses on providing equity investments for projects across road, rail, logistics and port infrastructure as part of the Sagarmala programme
The Union Cabinet has approved certain amendments to the existing Model Concession Agreement (MCA) for PPP projects at the Major Ports, which will address some of the thorny issues faced by the existing PPP port projects and attract more private investments to achieve capacity targets set under the Sagarmala programme.
With surplus capacity addition of container terminals in the Mundra-JNPT (North West) and the Chennai cluster (South East) regions, container terminals are likely to witness severe competitive pressures for larger share of incremental volumes; and thereby pressure on realisations as well.
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.
Under the Sagarmala Programme, 415 projects, at an estimated investment of approximately Rs 8 lakh crore, have been identified across port modernisation and new port development, port connectivity enhancement, port-linked industrialisation and coastal community development for phase-wise implementation over the period 2015 to 2035.
The port-led industrial growth has been having a multiplying effect on the economy, and this has been adequately demonstrated across the world. That said, to improve efficiency of the existing ports and develop new ones, the National Democratic Alliance government has launched the Sagarmala programme.
Rs 4 lakh crore spent in the past two and a half years towards building world-class highways and shipping infrastructure in the country, indicate reports. While the ministry has spent about Rs 3 lakh 17 thousand crore to build a total of 14,594 km and award 21,247 km of national highways, the shipping ministry has spent about Rs 80,000 crore for various projects aimed at modernising and mechanising the shipping sector and making it more efficient.
The Ministry of Shipping is planning to develop Paradip as a world-class, globally competitive, smart industrial Port City. The rationale behind developing Paradip as a smart city is that Paradip already has a major port and strong mineral resource presence in the region, which will factor to make Paradip a hub for MSMEs.