Vikram’s views on Sagarmala project are being published as a blog.
Objectives of Sagarmala project initiated by the Indian government are to:
- Promote port-led development in the country by harnessing India’s 7,500-km long coastline and 14,500-km of potentially navigable waterways.
- Indian coastline will be developed as Coastal Economic Regions.
Scope of Project
The scope of Sagarmala project is to:
- Modernize existing ports into modern world class ports.
- Integrate the development of the ports, the Industrial clusters and hinterland and efficient evacuation systems through road, rail, inland and coastal waterways resulting in ports becoming the drivers of economic activity.
- Develop 12 ports of India and also 1208 Islands near the coast.
- The government intends to develop 30 projects in the current fiscal year.
- Involves setting up of 14 Coastal Economic Zones (CEZs) and a SEZ at Jawaharlal Nehru Port Trust (JNPT) in Mumbai.
- Free trade warehousing zones will be established at Cochin and Ennore.
- 8 automobile industrial zones would be established at ports to recycle vehicles that are over 10 years old.
The project is proposed to be completed within 5 years.
- Government plans to invest about Rs 70,000 crores for the 12 major ports only.
- The development cost of the 30 projects in the current fiscal year is Rs 14,225 crores.
- Some projects will be undertaken in the PPP mode.
Why Sagarmala Project will be Great for India?
- It has the potential to boost India’s GDP by 2%.
- At present railways contribute 9% to GDP, roads 6% and ports only 1%. This needs to change and contribution of ports increase.
- At the moment logistics cost in India is 3 times that of China which will change to make India globally competitive.
- It is expected to generate 10,000 million jobs by the end of 2018.
- It is expected to increase shipping potential by 5 times of the current level.
- Increase and improvements in ports will provide strategic advantages to Indian Navy to dominate the Indian Ocean.
- It will promote fishing and tourism in the coastal region.