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Sagar Mala project

The  Sagarmala Programme  (transl. garland of the sea) is
Sagarmala Project
an initiative by the government of India to enhance the
performance of the country's logistics sector. The programme
envisages unlocking the potential of waterways and the
coastline to minimize infrastructural investments required to
meet these targets.[1][2]

It entails investing  ₹8.5  trillion  (equivalent to  ₹9.7  trillion,

US$120  billion or €120  billion in 2020) (2018) to set up new Country India
mega ports, modernizing India's existing ports, developing of
14 Coastal Economic Zones (CEZs) and Coastal Economic Prime Narendra Modi
Units, enhancing port connectivity via road, rail, multi-modal Minister(s)
logistics parks, pipelines & waterways and promoting coastal Ministry Ministry of Ports,
community development, with the aim of boosting Shipping and
merchandise exports by US$110 billion and generating around Waterways (India)
10 million direct and indirect jobs.
Key people Kailash Agarwal,
The Sagarmala Programme is the flagship programme of the Bhushan Kumar
Ministry of Shipping to promote port-led development in the [Joint Secretary of
country by exploiting India's 7,517  km long coastline, Ministry Of Shipping,
14,500 km of potentially navigable waterways and its strategic India] IRS(E)
location on key international maritime trade routes. Sagarmala
aims to modernize India's Ports, so that port-led development Established 31 July 2015
can be augmented and coastlines can be developed to Status Active
contribute to India's growth. It also aims at "transforming the Website www.sagarmala.gov
existing Ports into modern world-class Ports and integrate the
.in
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 in
coastal areas."[3]

Contents
Background
The scheme
Components
Mega Ports
Port-linked industrialization under Sagarmala
Coastal Economic Zones (CEZ) and Coastal Economic Units (CEU)
List of CEZs proposed under the Sagarmala Programme
Connectivity
List of Port-Linked Industrial Clusters (PLIC)
Other initiatives for promoting port-linked industrialization under Sagarmala
Coastal community development under Sagarmala
See also
References

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Background
The Sagarmala Programme was originally mooted by the  National Democratic Alliance
(India) government under Atal Bihari Vajpayee in 2003 as the maritime equivalent to the  Golden
Quadrilateral, another project under his government in the roads and highways sector. The
Programme aimed to exploit India's vast coastlines and industrial waterways to drive industrial
development.[4] It was approved by the cabinet in March 2015.[5]

The National Sagarmala Apex Committee (NSAC) is composed of the Minister of Shipping with
Cabinet Ministers from stakeholder ministries and ministers in charge of ports in India's maritime
states. The NSAC approved the overall National Perspective Plan (NPP) and regularly reviews the
progress of implementation of these plans.[6][7]

To assist in the implementation of Sagarmala projects, the Sagarmala Development Company

Limited (SDCL) was incorporated on 31 August 2016, after receiving Cabinet approval on 20 July
2016, for providing funding support to project SPVs and projects in-line with Sagarmala objectives.
Additionally, SDCL is also in the process of preparation of Detailed Project Report (DPRs) and
feasibility studies for specific projects that could provide avenues for future equity investment by
the company. The Sagarmala Development Company was incorporated after approval from the
Indian Cabinet on 20 July 2016 with an initial authorized share capital of Rs. 1000 Crore and
subscribed share capital of Rs. 90 Crore, to give a push to port-led development.[8]  The present
subscribed share capital of SDCL is Rs. 215 Crore.

The Indian Port Rail & Ropeway Corporation Limited (IPRCL) was incorporated on 10 July 2015 to
undertake the port-rail connectivity projects under Sagarmala Programme.

Sethusamudram Corporation Ltd is also a participant public sector enterprise in this project.

The Sagarmala National Perspective Plan was released by the Prime Minister on 14-April-2016[9] at
the maiden Maritime India Summit 2016, with details on Project Plan and Implementation.[10]

The scheme

Components

Under Sagarmala Programme, 577 projects, at an estimated investment of

approximately ₹8.570500 lakh crore (equivalent to ₹9.7 trillion or US$120 billion in 2020), have
been identified across port modernization & new port development, port connectivity
enhancement, port-linked coastal economic zone industrialization and coastal community
development for phase wise implementation over the period 2015 to 2035. As per the approved
implementation plan of Sagarmala scheme, these projects are to be taken up by the relevant
Central Ministries/Agencies and State Governments preferably through private/PPP mode. The
details are as below.

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No. of
Project Theme Project Cost (Rs 10)
Projects
₹1,416,410 million (equivalent to ₹1.6 trillion, US$20 billion or
Port Modernisation 245
€20 billion in 2020)
₹2,444,640 million (equivalent to ₹2.9 trillion, US$36 billion or
Connectivity Enhancement 210
€36 billion in 2020)
Port-Linked ₹4,639,700 million (equivalent to ₹5.5 trillion, US$69 billion or
57
Industrialisation €68 billion in 2020)
Coastal Community ₹69,760 million (equivalent to ₹83 billion, US$1.0 billion or
65
Development €1.0 billion in 2020)
₹8,570,500 million (equivalent to ₹10 trillion, US$130 billion or
Total 577
€130 billion in 2020)

[11]

As of 31-Mar-2018, a total of 492 projects (₹4.255630 lakh crore  (equivalent to  ₹4.8  trillion or
US$61  billion in 2020)) were under various stages of implementation, development and
completion.

Port-modernization under Sagarmala

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. India
has 12 major ports and approximately 200 non-major ports administered by Central and State
Governments respectively.

As per the studies conducted under the Sagarmala Programme, it is expected that by 2025, cargo
traffic at Indian ports will be approximately 2500 million tonnes per year while the current cargo
handling capacity of Indian ports is only 1500 million tonnes per year. A roadmap has been
prepared for increasing the Indian port capacity to over 3500 million tonnes per year by 2025 to
cater to the growing traffic. This includes port operational efficiency improvement, capacity
expansion of existing ports and new port development.

Under Project Unnati, the global benchmarks were adopted to improve the efficiency and
productivity KPIs for 12 major ports. Around 116 initiatives were identified across 12 major ports to
unlock more than 100 MTPA capacity just through efficiency improvement. Out of which, 86
initiatives have been implemented to unlock around 80 MTPA capacity.

Mega Ports

Six megaports are planned in Sagarmala project.[12]

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Location State Status

West
Sagar Island DPR under preparation
Bengal
Paradip Outer
Odisha DPR under preparation.
Harbour
Sirkazhi Tamil Nadu Techno Economic Feasibility Report(TEFR) prepared.
Major Transhipment Port at Kanyakumari. SPV formed for the purpose -
Kanyakumari Tamil Nadu
March, 2019.
Belikeri Karnataka Techno Economic Feasibility Report (TEFR) prepared.
Vadhavan Maharashtra DPR under preparation.

Port-linked industrialization under Sagarmala

Coastal Economic Zones (CEZ) and Coastal Economic Units (CEU)

Coastal Economic Zones (CEZ) is an important component of the Sagarmala Programme aimed

at port-led industrial development of 14 business-friendly Coastal Economic Zones (CEZ) with the
investment of  ₹4,639,700 million  (equivalent to  ₹5.5  trillion, US$69  billion or €68  billion in
2020), centered around ports in India spread across national coastline of 7,500 km, by using Make
in India indigenous manufacturing scheme. Sectors targeted for manufacturing units are maritime
and inland waterways, water transport, coastal and cruise shipping, and solar and wind energy
generation, auto, telecom and IT, etc. Each CEZ will cover economic region consisting of several
coastal districts with strong linkage to the ports in that region. Each CEZs will also create synergy
with  industrial corridors  passing through the region, such as  Delhi–Mumbai Industrial Corridor
Project,  Mumbai-Bangalore economic corridor,  Dedicated Freight Corridor,  Chennai Bangalore
Industrial Corridor,  Visakhapatnam–Chennai Industrial Corridor  and  Amritsar Delhi Kolkata
Industrial Corridor, etc.[13][14][15][16]

Each CEZ will have several  Coastal Economic Units  (CEU), and in turn each CEU will have
several Port-Linked Industrial Clusters (PLIC). "Coastal Employment Units" (CEUs) serve as
nodes within CEZ, each CEU industrial is an industrial estates with multiple industries. Each "Port-
Linked Industrial Clusters" (PLIC) within CEU will have several manufacturing units.[13][14][15]

Benefits include national GDP growth with ease of doing business by boosting export by US$100

billion, 150,000 job creation by 2025, reduction in export cargo logistics cost and time, and
increased global competitiveness of Indian exports.[13][14][16]

List of CEZs proposed under the Sagarmala Programme

Total 14 CEZs are planned to be developed in phases across coastal India.[14]

1. Kachch CEZ
2. Saurashtra CEZ
3. Suryapur CEZ
4. North Konkan CEZ
5. South Konkan CEZ
6. Dakshin Kanara CEZ
7. Malabar CEZ
8. Mannar CEZ

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9. Poompuhar CEZ
10. VCIC South CEZ
11. VCIC Central CEZ
12. VCIC North CEZ
13. Kalinga CEZ
14. Gaud CEZ

Connectivity

Of the 51, ₹44,600 crore (equivalent to ₹510  billion, US$6.3  billion or €6.2  billion in 2020) port
connectivity rail projects, 11 projects are already complete and rest are under execution.[17]

List of Port-Linked Industrial Clusters (PLIC)

Total 37 port-linked industrial clusters across several sectors:[14]

Discrete Manufacturing Cluster, total 23:

Petrochemical Cluster, total 4:
Power Cluster, total 4:
Steel Cluster, total 2:
Maritime Cluster, total 2:
Cement Cluster, total 2:

Other initiatives for promoting port-linked industrialization under Sagarmala

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.

Further, development of Smart Industrial Port City (SIPC) at Paradip and at Kandla ports and
Coastal Employment Units (CEUs) at V.O. Chaidambarnar Port Trust and Kamarajar Port Limited
is under progress.

Port-connectivity enhancement under Sagarmala

Under Sagarmala Programme, the endeavor is to provide enhanced connectivity between the ports
and the domestic production/consumption centres. More than 210 connectivity projects have been
identified. 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
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POL Pipelines

Coastal community development under Sagarmala

Fisheries

Sagarmala Programme in coordination with related Central Ministries and State Governments
would fund capacity building, infrastructure, and social development projects related to value
addition in fisheries, aquaculture and cold chain  development. As part of the coastal community
development component of the Sagarmala Programme, Ministry is part-funding fishing harbour
projects in convergence with Department of Animal Husbandry and Dairying (DADF).

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

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