Sagarmala worth ~6.5 trn now with 735 new projects
“WHILE SAGARMALA IS PORTLED AND FOCUSES ON REDUCTION IN THE COST OF LOGISTICS AND EXIM (EXPORT-IMPORT) COMPETITIVENESS, HOLISTIC DEVELOPMENT OF COASTAL DISTRICTS AIMS TO BRIDGE GAPS IN INFRASTRUCTURE AND CREATE ECONOMIC OPPORTUNITIES” SARBANANDA SONOWAL Minister for Ports,
Shipping & Waterways
The Centre’s Sagarmala plan for port-led development on Friday saw an addition of 735 projects, taking the total pipeline to 1,537 projects.
The cost of the project will now be ~6.5 trillion, said Sarbananda Sonowal, minister of ports, shipping and waterways.
After the meeting of the National Sagarmala Apex Committee (NSAC), the minister said that the government will undertake projects worth ~58,700 crore. It will be for the development of coastal districts across the country.
“While Sagarmala is port-led and focuses on reduction in the cost of logistics and EXIM (export-import) competitiveness, holistic development of coastal districts aims to bridge gaps in infrastructure and create economic opportunities,” the minister said.
The government is also adding 168 other projects for development, with a cost estimate to the tune of ~50,000 crore. The ministry's focus will be on PPP projects. A total of 29 projects worth ~45,000 crore have been successfully implemented under the PPP model, and an additional 32 PPP projects worth ~51,000 crore are currently being implemented, Sonowal said.
The net additional cost of the maritime plan is ~1 trillion now.
Business Standard had reported on Wednesday that the government is likely to almost double the projects in the 2035 Sagarmala pipeline at the apex panel meeting.
The apex committee, which was formed in 2015, met former shipping minister and now road transport and highways minister Nitin Gadkari, commerce minister Piyush Goyal, railways minister Ashwini Vaishnaw, civil aviation minister Jyotiraditya Scindia, and various state government leaders.
The shipping ministry has so far completed projects worth ~99,000 crore, with projects worth ~2 trillion in the pipeline for completion by FY24. Many of the added projects will be developed by subsuming existing projects of state governments within the Sagarmala pipeline.
Sources indicated that this is being done to integrate port development efforts, as these projects will now be supported financially by the Centre. Their execution will be given an impetus through the PM Gatishakti National Master Plan.
Sonowal also said that the Inland Waterways Authority of India (IWAI) has identified five new areas for the development of passenger services using feasible waterways — Varanasi, Kolkata, Patna, Guwahati and Dibrugarh.
With most avenues of domestic freight transportation congested, the ministry estimates that a potential freight of 340 million tonnes (mt) can be achieved through coastal shipping by FY25.
Congested networks are a major factor for the high cost of logistics in India.
Gadkari on Friday said the new initiatives were aimed at decongestion and a move towards methanol-based shipping fuel can lead to significant cost savings.