Sagarmala: Concept and implementation towards Blue Revolution

prime objective of the Sagarmala projec

1.to promote port-led direct and indirect development
2. to provide infrastructure to transport goods to and from ports quickly,effici
ently and cost-effectively

Sagarmala Project

****AIM***

to develop access to new development regions with intermodal solutions

enhanced connectivity with main economic centres
expansion of rail, inland water, coastal and road services.

The Sagarmala initiative will address challenges by focusing on four pillars of

development
(i) Supporting and enabling Port-led Development through appropriate policy an
d institutional interventions
(ii) Collaboration of ministries/departments/states for integrated development,
(iii) Port Infrastructure Enhancement, including modernization and setting up of
new ports,
(iv) Efficient Evacuation to and from hinterland.

Sagarmala Project therefore intends

to achieve the broad objectives
1.by enhancing the capacity of major and non-major ports
2.enabling existing to become drivers of port-led economic development,
3.optimizing the use of existing and future transport assets
4.establishment of industries and manufacturing centres to be served by ports in
EXIM and domestic trade.
5.promotes usage of electronic channels for information exchange leading to quic
k, efficient, hassle-free and seamless cargo movement.

######comprehensive and integrated planning for

Plan (NPP)

Sagarmala , a National Perspective

it shall be prepared with

in six months

*******identify potential geographical regions to be called Coastal Economic Zon

es (CEZs)
6.synergy and integration with planned Industrial Corridors, Dedicated Freight C
orridors, National Highway Development Programme,
Industrial Clusters and SEZs would be ensured.
Q How to develop CEZs?
1.development of each Coastal economic zone shall be done through individual pro
ject
2.and supporting activities that will be undertaken by
State Government,
Central line Ministries
and SPVs
3.synergising and coordinating with State Governments
4.through their existing schemes and programmes
5.related to community and rural development
6.tribal development
7.employment generation, fisheries, skill development, tourism promotion
8. a separate fund by the name ********************** Community Development Fund ***
******************** would be created.

In order to have effective mechanism at the state level for coordinating and fac
ilitating Sagarmala related projects,
the State Governments will be suggested to set up
####State Sagarmala Committee

headed by Chief Minister/Minister in Charge of Ports

members from relevant Departments and agencies
state level Committee will also take up matters on priority as decided in the NS
AC.

Objective of state marine board

the State Maritime Boards/State Port Departments responsible for coordination an
d implementation of individual projects including through SPVs

#####Sagarmala Coordination and Steering Committee (SCSC)

COMPOSITION
chairmanship of the Cabinet Secretary
Committee will provide coordination between various ministries
CMs of state governments

####Purpose of SCSC
implementation and review the progress of implementation of the National Perspec
tive Plan
Improvement of operational efficiency of existing ports
re-engineering to simplify processes and procedures
modernizing and upgrade the existing infrastructure
Increased use of information technology and automation to ensure paperless and s
eamless transactions
#######Sagarmala initiative would also strive to ensure
sustainable development of the population living in the Coastal Economic Zone (C
EZ)

Institutional Framework for implementing Sagarmala has to provide for a coordina

ting role for the Central Government.
provide a platform for central, state governments and local authorities to work
in tandem
coordination under the established principles of

cooperative federalism ,

National Sagarmala Apex Committee (NSAC)

for overall policy guidance and high level coordination,
###Purpose of committee
1.to review various aspects of planning and implementation of the plan and proje
cts
2.guidance for the initiative s implementation
3.approve the overall National Perspective Plan (NPP)
4.review the progress of implementation of these plans.

#####Sagarmala Development Company (SDC)

SDC will be set up under the Companies Act, 1956
***Purpose
1.to assist the State level/zone level Special Purpose Vehicles (SPVs)
2.The SDC will provide a funding window and/or implement only those residual pro
jects that cannot be funded by any other means/mode.

##### selection of projects

identified projects for implementation in the initial phase will be based on the
available data and feasibility study reports
and the preparedness, willingness and interest shown by the State Governments an
d Central Ministries to take up projects.

### efforts would be made to implement those projects through

private sector
and
Public Private Participation (PPP) wherever feasible.

Background:
the current proportion of merchandize trade in Gross Domestic Product (GDP) of I
ndia is only 42 percent,
developed countries and regions in the world such as Germany and European Union,
it is 75 percent and 70 percent respectively
great scope to increase the share of merchandising trade in India s GDP.
India lags far behind in ports and logistics infrastructure.
Against a share of 9 percent of railways and 6 percent of roads in the GDP the s
hare of ports is only 1 percent

##### CHALLENGES ahead of INDIA"s MARITIME SECTOR

1.The growth of India s maritime sector is constrained due to many developmental,
procedural and policy related challenges
2.involvement of multiple agencies in development of infrastructure
3.presence of a dual institutional structure
4.development of major and non-major ports as separate, unconnected entities
5.lack of requisite infrastructure for evacuation from major and non-major ports
6.limited hinterland linkages that increases the cost of transportation
7.high logistics costs make Indian exports uncompetitive.
8.low penetration of coastal and inland shipping in India,
9.procedural bottlenecks

########
One of the key determinants for efficiency of Ports is evacuation and hinterland
connectivity.

An efficient evacuation system and seamless connectivity to the hinterland from

the Port can substantially reduce the logistic costs for the trade
which will enhance the competitiveness of India.
Though the Major Ports and Indian Railways have taken up many connectivity proje
cts,
there is an urgent need for focused attention and substantial allocation of reso
urces.

####kind of development projects that could be undertaken in Sagarmala initiativ

e are
(i) Port-led industrialization
(ii) Port based and coastal tourism and recreational activities
(iii) Short-sea shipping and Inland Waterways Transportation
(vi) Logistics parks, warehousing
(v) Integration with hinterland hubs
(vi) Specialization of ports in certain economic activities such as energy, cont
ainers, chemicals, coal, agro products
(vii) Modernizing the existing ports and development of new ports
This strategy incorporates both aspects of port-led development viz. port-led di
rect development and port-led indirect development.