Sagarmala
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The Sagarmala program is the Government of India's strategic investment initiative worth Rs. 8.5 trillion to develop ports and coastal infrastructure around India. It aims to boost merchandise exports, generate jobs, and reduce logistics costs. Key components of the program include modernizing existing ports, developing new mega ports and coastal economic zones, and enhancing connectivity infrastructure like roads and railways between ports and industrial areas. It identifies over 500 projects across areas of port modernization, connectivity, industrialization, and community development. Successful implementation is expected to double waterways usage, save logistic costs, increase exports, and create over 10 million new jobs in 10 years.
Sagarmala
- 1. SAILISH CEPHAS E 17MK09 M.E. INFRASTRUCTURE ENGINEERING PSG COLLEGE OF TECHNOLOGY COIMBATORE
- 2. Sagarmala? • Sagar- sea or ocean • Mala- a string of prayer beads. • Sagarmala- development of ports around Indian coastal lines in the shape of prayer beads.
- 3. What is sagarmala? The Sagarmala Program is a strategic ₹8.5 trillion (US$120 billion or €110 billion) investment initiative of the Government of India entailing setting up of new mega ports, modernization of India's existing ports, development of 14 Coastal Employment Zones (CEZs) and Coastal Employment Units, enhancement of port connectivity via road, rail, multi-modal logistics parks, pipelines & waterways and promote coastal community development, resulting in boosting merchandise exports by US$110 billion, and generation of around 10,000,000 direct and indirect jobs. The Sagarmala Program is the flagship program of the Ministry of Shipping to promote port-led development in the country through harnessing India’s 7,500 km long coastline, 14,500 km of potentially navigable waterways and strategic location on key international maritime trade routes.
- 4. Background • The Sagarmala Program was originally mooted by the National Democratic Alliance (India) Government under Atal Bihari Vajpayee in 2003. • On 25 March 2015, Cabinet gave approval for the Sagarmala Program. The National Sagarmala Apex Committee (NSAC), composed of the Minister of Shipping, with Cabinet Ministers from stakeholder Ministries and Chief Ministers / Ministers in-charge of ports of India's maritime states as members, provides policy direction and guidance for the initiative’s implementation. The NSAC approved the overall National Perspective Plan (NPP) and regularly reviews the progress of implementation of these plans
- 5. • To assist in implementation of Sagarmala projects, the Sagarmala Development Company Limited (SDCL) was incorporated on 31st August 2016, after receiving Cabinet approval on 20thJuly 2016, for providing funding support to project SPVs and projects in-line with Sagarmala objectives.
- 6. • The Indian Port Rail Corporation Limited (IPRCL) was incorporated on 10th July 2015 to undertake the port-rail connectivity projects under Sagarmala Program.
- 7. Need for Sagarmala • Indian ports lags behind the Global average in Turn around time. Turn around time at major ports in India are approximately 4 to 5 days whereas the Global average is 1 day • To optimize the logistics costs for existing and future capacities. 94% of Indian freight uses either road or rail for transportation of goods. It creates an idle time in transit. Increasing the internal water transport system will reduce the idle time. And cost of transportation via waterways is cheap. Mode of Transportation Transportation Cost (Rs/Ton-Km) Road 2.0-3.0 Rail 1.2-1.5 Waterways 0.2-0.3 Pipelines 0.1-0.15
- 8. Objectives
- 11. The scheme S. No. Project Theme No. of Projects Project Cost (Rs. Million) 1. Port Modernization 245 ₹1,416,410 million (US$21 billion or €18 billion) 2. Connectivity Enhancement 210 ₹2,444,640 million (US$36 billion or €30 billion) 3. Port-Linked Industrialization 57 ₹4,639,700 million (US$68 billion or €58 billion) 4. Coastal Community Development 65 ₹69,760 million (US$1.0 billion or €870 million) Total 577 ₹8,570,500 million (US$120 billion or €110 billion) As of 31-Mar-2018, a total of 492 projects (Rs₹4.255630 lakh crore (US$62 billion)) were under various stages of implementation, development and completion.
- 12. Port-Modernization • 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.
- 14. Proposed new ports S . No. New Port Location State Present Status 1. Tajpur West Bengal DPR under preparation 2. Paradip Outer Harbour Odisha DPR under preparation. 3. Sirkazhi Tamil Nadu Techno Economic Feasibility Report(TEFR) prepared. 4. Enayam Tamil Nadu In principle approval obtained for setting up Major Port at Enayam. DPR under preparation. 5. Belikeri Karnatak a Techno Economic Feasibility Report (TEFR) prepared. 6. Vadhavan Maharas htra DPR under preparation.
- 15. Port-connectivity enhancement • Under Sagarmala Program, endeavor is to provide enhanced connectivity between the ports and the domestic production/consumption centers. More than 210 connectivity projects have been identified.
- 16. 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
- 18. Port-linked Industrialization • For port linked industrialization, development of coastal economic zones and coastal economic clusters have been made. • A special economic zone (SEZ) is an area in which business and trade laws are different from the rest of the country. SEZs are located within a country's national borders, and their aims include: increased trade, increased investment, job creation and effective administration. To encourage businesses to set up in the zone, financial policies are introduced.
- 23. • 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.
- 24. Type of Cluster Total Potential Location cluster Rs. Cr Bulk Petrochemical 4 18,080 Ennore (Tamil Nadu), Gujarat, Kakinada (AP) Power 4 108,897 Krishnapatanam (AP), Ennore (Tamil Nadu), Maharashtra, Tuticorin (Tamil Nadu) Steel 2 154,000 Ennore (Tamil Nadu), Southern Maharashtra Cement 2 49,000 Gujarat, Andhra Pradesh Discrete Manufacturing Apparel 3 9,963 Saurashtra (Gujarat), Central Andhra Pradesh and Vidarbha (Maharashtra) Leather & Footwear 3 5,640 Bihar, Tamil Nadu, West Bengal Food Processing 3 387 Satara (Maharashtra), Kakinada (AP), Andhra Pradesh Furniture 2 4,516 Kutch (Gujarat), Bihar Electronics 11 50,005 North Maharashtra, Velum Teluka (Goa), Tamil Nadu, AP, Gujarat, Parganas, West Bengal, Bhubneshwar (Odisha), Ernakulam (Kerala), Tunda (Gujarat), Chittor (AP), Tirupati (AP) Auto 1 4,465 Sanand (Gujarat) Maritime Maritime 2 900 Tamil Nadu Total 37 405,854 Industrial & Maritime Clusters Planned under Sagarmala
- 25. Coastal Community Development • Approximately 18% of India's population lives in the 72 coastal districts and that comprise 12% India's mainland. Since these people are critical stakeholders ensuring their well being is important. • A Community Development Fund (CDF) have been created to fund projects related to community development under sagarmala. • Under this fund, skill development for coastal communities and marine fishermen community development programs is to be made.
- 26. Private companies involved in sagarmala Techno-economic feasibility studies, master planning, detailed project report and detailed engineering services required for developing the port. Dhamra port Engineering services, preparing reports. consulting, program and construction management, strategic planning, procurement, architecture planning, energy management, and infrastructure planning services.
- 27. 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
- 28. Impact of sagarmala • The projects identified under Sagarmala Program are expected to mobilize more than Rs.7 Lack Crore of infrastructure investment, double the share of domestic waterways (inland & coastal) in the modal mix, generate logistic cost savings of Rs.35,000-40,000 Crore per annum, boost merchandize exports by USD 110 Billion and enable creation of 1 Cr new jobs, including 40 Lac direct jobs, in the next 10 years.