This project aims at transforming the existing ports and creating new ones with world-class technology and infrastructure. This project is also expected to integrate them with industrial clusters and the hinterland through rail, road, inland and coastal waterways.
What is Sagarmala Project?
The Sagarmala initiative is expected to tackle underutilised ports by focusing on port modernisation, efficient evacuation and coastal economic development.
Sagarmala would also complement the Golden Quadrilateral project and would provide sea connectivity to major industrial centres approachable through sea route.
Steps taken so far for Sagarmala Project by Narendra Modi Government
Funding for ports
An estimated USD10.9 billion shall be required for the development of 12 major ports. While a major part of the investment would be made by the government, some projects would be developed through the PPP model.04
An estimated initial investment of USD108 million for the first phase of development in FY2014-15 will be required.
The government is expected to carry out an extensive study for thorough and integrated planning for Sagarmala.
Submission of investment proposals
Andhra Pradesh has submitted investment proposals worth USD625 million to develop ports and connectivity infrastructure along its coastline.
JNPT SEZ sent for approval
• The master plan of the Jawaharlal Nehru Port Trust Special Economic Zone (JNPT SEZ) of approximately 275 hectares had been sent for approval to the Ministry of Shipping, and its construction is expected to commence in early 2016.07
• The government expects to attract an investment of USD500 million from Indian and global industrialists. The Port Trust would invest USD73 million.
Expected next steps for Sagarmala Project By Narendra Modi Government
Port based city development
Developing twelve smart cities near ports at an investment of USD7.8 billion.08
Redevelopment of existing infrastructure
Port handling equipment would be upgraded, and monitoring and operations of port activity would be improved. The government plans to extensively use Information Technology enabled Services (ITeS) for modernising ports.08
Development of CEZ
Ten Coastal Economic Zones (CEZ) would be established.
Impact of Sagarmala Project
The development of CEZs would lead to increased economic activity, aiding 2 per cent boost to GDP growth.11
Increased traffic and capacity
The coastal and inland waterways traffic is expected to increase 15 times over the next 20 years. Similarly, capacity augmentation would lead to 5 times their current traffic capacity over the mentioned period from the existing 350 million tonnes.12
Urbanisation and development
The project would lead to the urbanisation of coasts and development of cities/states along the coastline.
Renewable energy development
Offshore wind power generation is expected to be tapped along the coastline development, for offering viable offshore wind power generation.
Business opportunities due to Sagarmala Project
Development of ports
The government is expected to invest USD10.9 billion on the development of 12 major ports involving large-scale construction projects.13
Development of CEZs and townships
To establish CEZs along the coastline and develop areas in the vicinity of the ports, the government is expected to push development of townships to provide extensive opportunities for real estate developments.
Development of national and inland waterways
The project would lead to the development of fully integrated coastline through inland and mega waterways. The World Bank has provided USD655 million for the development of 5 existing national waterways.14
Port development will facilitate new logistic parks and lead to development of road and rail connectivity around the region.
The Sagarmala project aims to involve the widening and deepening of channels to accommodate large vessels. Considering that dredging activities constitute at least 5 per cent of the port development costs, the sector is expected to add an additional revenue of USD78 million every year.15
The development of marinas and modern jetties, along with coastal tourist circuits, along the coastline is expected to increase the scope of tourism activities, such as luxury yachting and holiday cruises.16
Ship building and repair
Coastline development will boost ship building and related MRO activities across the country. Foreign participation would play a key role here.
Skill development centers such as maritime institutes would benefit from this programme; there will be greater need for skilled manpower to operate modern infrastructure.