SAGARMALA PROJECT
15, Jul 2019
Prelims level : Economics- Infrastructure
Mains level : GS3- Infrastructure: Energy, Ports, Roads, Airports, Railways, etc.
- The Sagarmala is a series of projects to leverage the country’s coastline and inland waterways to drive industrial development.
- It was originally mooted by the Vajpayee government in 2003 as the waterways equivalent of the Golden Quadrilateral.
- Sagarmala, integrated with the development of inland waterways, is expected to reduce cost and time for transporting goods, benefiting industries and export/import trade.
Four Broad Areas:
- 1. Modernise port infrastructure, add up to six new ports and enhance capacity.
- 2. Improve port connectivity through rail corridors, freight-friendly expressways and inland waterways.
- 3. Create 14 coastal economic zones or CEZs and a special economic zone at Jawaharlal Nehru Port Trust in Mumbai with manufacturing clusters to enable port-led industrialisation.
- 4. Develop skills of fishermen and other coastal and island communities.
Features:
- Supporting and enabling Port-led Development
- Port Infrastructure Enhancement, including modernization and setting up of new ports
- Efficient Evacuation to and from hinterland.
Why is it important?
- India is located along key international trade routes in the Indian Ocean and has a long coastline of over 7,000 km. Yet, capacity constraints and lack of modern facilities at Indian ports tremendously elongates the time taken to ship goods in and out of the country and has held back India’s share in world trade.
- Developing rivers as inland waterways can also help save domestic logistics costs too. Transport costs are high in India – 18 per cent of GDP, compared to less than 10 per cent in China.
- Port infrastructure and linkages have been frankly a sinking ship and initiatives such as Make in India cannot take off without better port infrastructure. This has led to expectations that Sagarmala could boost India’s merchandise exports to $110 billion by 2025 and create an estimated 10 million new jobs (four million in direct employment).
The Administrative Framework:
- National Sagarmala Apex Committee
- At apex level, a National Sagarmala Apex Committee (NSAC) will be created to provide overall policy guidance. It will be headed by shipping minister
- Sagarmala Development Company (SDC)
- Under Companies Act, 2013.
- This company will serve as a special purpose vehicle {SPV)
- Sagarmala Coordination and Steering Committee
- At national level, the government will constitute a Sagarmala Coordination and Steering Committee (SCSC) under Cabinet Secretary with Secretaries other ministeries
National Perspective Plan
- National Perspective Plan (NPP) for the entire coast of India integrating the Industrial Corridors, Dedicated Freight Corridors, National Highway Development Programme, Industrial Clusters and so on
- The coastal states have been suggested to set up State Sagarmala Committee to be headed by Chief Minister/Minister in Charge of Ports with members from relevant Departments and agencies.