Sagarmala project: Objectives, cost, and current status

To boost port connectivity and promote port-led developments in the country, the Indian government is spearheading the ambitious Sagarmala project. India has a vast coastline of over 7,500 kilometres and navigable waterways spanning 14,500 kilometres. This ambitious programme is aimed at modernising the country’s port infrastructure, while giving a boost to the economy.

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The Sagarmala project, in line with the Maritime India Vision 2030, also aims to provide improved facilities to the people living in the coastal regions. With the objective of developing global standard ports in India, Maritime India Vision 2030 has identified several initiatives such as the development of world-class mega ports, trans-shipment hubs, and infrastructure modernisation of ports.

Under the Sagarmala Programme, a total of 70 projects worth Rs 2,856 crore have been sanctioned, out of which 15 projects worth Rs 849 crore have been completed. The projects involve the development of coastal berths, roll-on/ roll-off, passenger jetties, etc. According to the Union Minister of Ports, Shipping and Waterways, Sarbananda Sonowal, the government has undertaken several initiatives and projects to facilitate shifting of cargo from conventional land-based transportation to coastal shipping mode.

Sagarmala project objectives

The Sagarmala project is a flagship initiative by the Ministry of Ports, Shipping and Waterways. The project received approval from the union cabinet on March 25, 2015.

The main objective of this initiative is the integrated development of all maritime-related activities, by harnessing the country’s coastline and navigable waterways and boosting the performance of the logistics sector. It will provide infrastructure to facilitate quick transportation of goods to and from the ports. The vision of the Sagarmala project is to reduce the logistics costs for domestic and EXIM (export-import) and cargo through infrastructure investment.

The programme involves a series of projects categorised under port-connectivity, freight expressways, new pipelines for transportation of crude and petroleum products, coastal community development, development of prioritised inland waterways and new multi-modal logistics hubs.

See also: All you need to know about India’s national waterways

The four pillars of Sagar mala project

The key focus areas or the four pillars of the Sagarmala project are:

Port modernisation, which involves capacity augmentation and development of new ports.
Port connectivity, comprising connectivity to new roads or railways, up-gradation of roads or railways, coastal shipping, inland water transport and logistics parks.
Port-led industrialisation, encompassing the development of industrial clusters, coastal employment zones, maritime clusters, smart industrial port cities and port-based SEZs.
Coastal community development, including skill development, coastal tourism projects, development of fishing harbours and fish processing centres.

For implementing the programme, the Sagarmala Development Company (SDC) has been constituted, which will serve as a nodal agency and provide equity support for various special purpose vehicles (SPVs) set up for the projects. It will also be responsible for providing funding window for residual projects and preparing detailed master plans for the Coastal Economic Zones (CEZs) identified under a National Perspective Plan (NPP).

Also read about SEZ meaning and all about Special Economic Zone

Sagarmala project cost

For implementing the Sagarmala project, state governments would set up state-level Sagarmala committees that would be headed by the chief minister or the minister in charge of ports. The identified projects under the Sagarmala programme would be taken up by the relevant ports, central ministries, state governments or maritime boards, through private or public-private partnership (PPP) model. Under this mega project, over 574 projects have been identified under the four components of the Sagarmala scheme, for implementation during 2015-2035, with a total budget of around Rs six lakh crores.

Sagarmala project: Timeline

August 2003	Project announced by the then PM Atal Bihari Vajpayee.
March 2015	The project gets cabinet approval.
July 2015	Indian Port Rail Corporation Limited (IPRCL) gets incorporated for implementing the programme.
April 2016	NPP released by the PM.
September 2016	Government announces the incorporation of the Sagarmala Development Company.
April 2023	Government inaugurates National Technology Centre for Ports, Waterways and Coasts (NTCPWC)

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Sagarmala project: Understanding the impact

The Sagarmala project is aimed at addressing the present situation of the country’s ports infrastructure. There is lack of proper connectivity in the hinterland and inadequate infrastructure facilities, leading to increased cost of transportation and cargo movement.

By providing improved connectivity to the ports and integrated with the development of inland waterways, the Sagarmala project is expected to reduce the cost and time required for transportation of goods. This will give a significant boost to the industries and export-import trade in the country.

This infrastructure project is also expected to give a major push to job creation. In 2019, the government said that the Sagarmala project resulted in the creation of around 10,000 jobs over a period of three years. It also said that it could lead to the creation of one crore new jobs, including 40 lakh direct jobs, over the next 10 years.

See also: All about the Bharatmala Pariyojana

Sagarmala project: Latest news

August 2, 2023: The Ministry of Ports, Shipping and Waterways has issued revised Sagarmala Funding Guidelines on April 5, 2023, according to an official statement. According to the revised Funding Guidelines for the Ministry’s flagship Central Sector Scheme, the fund contribution from Sagarmala Programme (from the budget of Ministry of Ports, Shipping and Waterways) in any project will be limited to 50% of the estimated cost of the project line with the DPR or tendered cost, whichever is lesser.

However, the ministry may provide 100% financial assistance for any project based on uniqueness, strategic nature, necessity, merits, financial condition of the major port, etc. after the approval of the minister in charge.

Govt to develop Nehru Port as smart port within a year: Sonowal

May 26, 2023: The minister for ports, shipping and waterways Sarbananda Sonowal has said that the government plans to develop the country’s premier container port Jawaharlal Nehru Port as a fully smart port within one year, mentioned media reports. The government aims to make it a fully electronically connected system for better services, the minister said.

He further added that the Jawaharlal Nehru Port Authority (JNPA) has seen 29 industrial units coming up in its SEZ under the Sagarmala Project. The SEZ project at JNPA is developed under the port-led industrialisation plan on 277 hectare of freehold land by the JN Port, incorporating the land use plan of the port.

May 22, 2023: The ministry of ports, shipping and waterways (MoPSW) has said that it would provide 30% financial support for the promotion of green shipping. It also said that a single-window portal will be developed to facilitate and monitor river and sea cruises. The ministry has made important announcements on green shipping and digitisation of ports. According to an official statement, Green Hydrogen hubs will be developed at Deendayal Port, Kandla and VO Chidambaranar Port, Tuticorin. Further, the Jawaharlal Nehru Port, Tuticorin is set to become Smart Ports by 2024.

May 19, 2023: A ‘Riverine-based tourism Circuit’ is being developed over the river Brahmaputra to connect seven historical sites in Guwahati – Kamakhya, Pandunath, Ashwaklanta, Doul Govinda, Umananda, Chakreshwar and Auniati Satra under the Sagarmala programme.

A memorandum of understanding (MoU) will be signed among the Inland Waterways Authority of India (IWAI), the Sagarmala Development Company Limited (SDCL), the Assam Tourism Development Corporation Limited (ATDC) and the Directorate of Inland Water Transport (DIWT) Assam in Guwahati, for the development of ‘Riverine Based Religious Tourism Circuit. The MoU will facilitate modern ferry service on a ‘Hop On Hop Off’ among these religious sites.

National Technology Centre to be launched under Sagarmala programme

The Government of India has set up a National Technology Centre for Ports, Waterways and Coasts (NTCPWC) under the Sagarmala programme at a cost of Rs 77 crore. The NTCPWC, located at IIT Chennai, will be inaugurated by the Union Minister for Ports, Waterways and Waterways Sarbananda Sonowal on April 24, 2023, according to an official statement. The NTCPWC will be the technological arm of the ministry and develop cutting-edge solutions to address the various challenges faced by the sector. The institute will have world-class capabilities to undertake 2D and 3D investigations of research and consultancy nature for the port, coastal and waterway sector across various disciplines.

Projects worth Rs 1.13 lakh cr undertaken in Maharashtra

The Union Minister of Ports, Shipping and Waterways Sarbananda Sonowal recently said that there are 126 projects worth Rs 1.13 lakh crore have been undertaken in Maharashtra under the Sagarmala programme. Out of the total 126 projects, 39 projects with a cost of Rs 16,393 crore have been completed. There are 42 projects amounting to Rs 18,146 crore under implementation and 45 projects worth Rs 78,746 crore under development stage.

In 2019, the government had announced the development of a National Grid for Ports that would connect the major and minor ports. It would boost the efficiency of port operations and sustained development of ports. As many as 121 projects were completed at a cost of Rs 30,228 crores, as of September 2019.

In March 2021, Prime Minister Narendra Modi said that India was planning to invest $82 billion in port projects by 2035, increase the share of clean renewable energy sources in the maritime sector, develop waterways, augment seaplane services and boost tourism around lighthouses. He further said that the ports ministry had prepared a list of 400 investable projects, having an investment potential of $31 billion. It would further strengthen India’s commitment to the overall development of the maritime sector.

Highlighting on improving efficiency, the prime minister said that the capacity of major ports, which was 870 million tonnes in 2014, had increased to around 1,550 MT per annum. The government said it also plans to operationalise 23 waterways by 2030 and focus on encouraging private investment in the ports sector.

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FAQs

How many ports are there in India?

There are 13 major ports and over 200 notified minor and intermediate ports in India.

What is a coastal economic zone?

Coastal economic zones are designated coastal areas, comprising of a group of coastal districts or districts with a strong linkage to the ports, with special economic regulations. The government plans to develop 14 CEZs in eight states, for promoting port-led industrialisation under the project.

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Harini Balasubramanian

Harini is a content management professional with over 12 years of experience. She has contributed articles for various domains, including real estate, finance, health and travel insurance and e-governance. She has in-depth experience in writing well-researched articles on property trends, infrastructure, taxation, real estate projects and related topics. A Bachelor of Science with Honours in Physics, Harini prefers reading motivational books and keeping abreast of the latest developments in the real estate sector.