Sagarmala – 2016 Review
The #Ministry of Shipping has taken several steps during the year to build its base for realizing the full potential of India’s maritime sector.
From weeding out and amending obsolete legislations to modernizing existing infrastructure to building new ones, the Ministry has unleashed a whole range of initiatives aimed at the growth and development of the sector.
The highlights of the work done by the Ministry during the year are as follows:
i. #National Perspective Plan
#Sagarmala Programme is now moving from the conceptualization and planning to the implementation stage. The National Perspective Plan (NPP), for the comprehensive development of India’s coastline and maritime sector, was released at the maiden Maritime India Summit 2016, on 14th April, 2016.
ii. Projects under Sagarmala
As part of Sagarmala, more than 400 projects, at an estimated investment of more than Rs.7 lack crore, have been identified across the areas of port modernization and new port development, port connectivity enhancement, port-linked industrialization and coastal community development.
These projects will be implemented by relevant Central Ministries, State Governments, Ports and other agencies primarily through the private or Public Private Participation (PPP) mode.
Rs.242.92 cr. has been released for 14 projects under Sagarmala.
In addition, Shipping Ministry is also funding special projects under Sagarmala.
Rs.58.5 cr. has been released for capital dredging for Gogha-Dahej RO-Pax Ferry Services Project and Rs. 43.76 cr. has been released for RO-RO Services Project at Mandwa.
TEFR is under preparation for development of underwater viewing gallery and restaurant at Beyt Dwarka Island.
iii. Sagarmala Development Company (SDC)
The Sagarmala Development Company (SDC) was incorporated on 31stAugust 2016, for providing equity support to residual projects under Sagarmala.
The first Board meeting of the SDC was held on 21stSeptember 2016 and Subscribed Share Capital of Rs.90 Crore has been released to SDC.
iv. Port Modernization & New Port Development
Master Plans for 12 major ports have been finalized.
142 port capacity expansion projects (total cost: Rs.91,434 cr.) have been identified for implementation over the next 20 years.
Out of this, 30 projects (total cost: Rs.11,612 cr.) have been proposed for implementation starting FY 2016-17.
In addition, Techno Economic Feasibility Project Reports (TEFRs) have been finalized for 6 new port locations, namely – Vadhavan, Enayam, Sagar Island, Paradip Outer Harbour, Sirkazhi, Belekeri.
Detailed Public Project (DPR) has been prepared for a new port at Sagar Island.
DPR is under preparation for Vadhavan, Paradip Satellite Port and Enayam. In-principle approval has been accorded by the Union Cabinet for setting up a major port at Enayam on 5th July 2016.
v. Port connectivity enhancement
Indian Port Rail Corporation Limited (IPRCL) has taken up 25 works across nine major ports.
Out of this, eight works have already been awarded and five more are targeted for award in the remaining part of FY 2016-17.
DPR is under preparation/approval for the remaining 12 works.
Out of the final list of 27 rail connectivity projects identified under Sagarmala, 21 projects (about 3,300 km, total cost: Rs.28,000 crore.) are being taken up by Ministry of Railways.
Four projects (about 151 km, total cost: Rs.3,590 cr.) are to be taken up either in Non–Government Rail (NGR) or JV model through Indian Port Rail Corporation Limited.
Out of 79 road connectivity projects identified under Sagarmala, 45 projects will be done by MoRTH and NHAI, including 18 projects under the Bharatmala scheme.
The remaining 34 projects will be done by State PWD, Port Authorities and Sagarmala Development Company in coordination with MoRTH/NHAI.
The scope of the Coastal Berth Scheme has been expanded and approved since August 2016.
The scheme was also integrated into the Sagarmala Programme.
Eleven projects have been sanctioned (Rs.70 crore. released) and 24 proposals are for consideration under the scheme.
An Inter-Ministerial Committee (IMC) has also been constituted to develop a strategy and implementation roadmap for the coastal shipping of coal and other commodities/product.
Based on the recommendations of the IMC, DPR is under preparation for the heavy haul rail corridor between Talcher & Paradip.
vi. Port-led Industrialization
To promote port-led industrialization, 14 Coastal Economic Zones (CEZs) covering all the Maritime States and Union Territories have been proposed.
A CEZ is conceptualized as a spatial-economic region which could extend along 300-500 km of coastline and around 200-300 km inland from the coastline.
Each CEZ will be aligned to relevant major and non-major ports in the State and is envisaged to tap synergies with the planned industrial corridors.
CEZ perspective plans have been prepared and Detailed Master Plans will be prepared for 5 pilot CEZs (in Gujarat, Maharashtra, Tamil Nadu, Andhra Pradesh and Odisha) in the first phase of development.
The vision of the Sagarmala Programme is to reduce logistics cost and time for the movement of EXIM and domestic cargo and development of port-proximate future industrial capacities near the coast is a step in this direction.
Twenty-nine potential port-linked industrial clusters across three sectors, namely – Energy, Materials and Discrete Manufacturing, have been identified under Sagarmala.
These include 13 bulk clusters for basic input industries such as Power, Refineries & Petrochemicals, Steel and Cement, 2 Maritime clusters and 14 discrete manufacturing clusters, in the labour intensive sectors of Electronics, Apparel, Leather Products, Furniture and Food-Processing etc.
The master plans for the proposed Maritime Clusters in Gujarat and Tamil Nadu have been prepared.
Based on availability of land with the Major Ports, the Shipping Ministry is developing a SEZ at JNPT, Free Trade Warehousing Zone (FTWZ) at Ennore and has also identified Kandla and Paradip for development of Smart Port Industrial Cities (SPICs).
vii. Coastal Community Development
As part of the coastal community development objective of the Sagarmala Programme, the Shipping Ministry is taking up a number of initiatives/projects.
Notable among them are the coastal community skilling projects and projects for development of marine fisheries sector.
To support the development of fishermen community, the Ministry is part-funding select fishing harbour projects under Sagarmala in convergence with Department of Animal Husbandry Dairying & Fisheries (DADF).
The project for modernization & upgrading of Sassoon Dock, costing Rs.52.17 crore, has already been sanctioned.
Ten additional proposals, across five Maritime States, are under consideration for approval.
The Ministry is also supporting the development of deep sea fishing vessels and fish processing centers in convergence with DADF.
The Ministry is taking up a number of projects to enhance livelihood/employment opportunities for the coastal communities.
It has already released Rs.16.9 cr. under Sagarmala, for skilling projects covering more than 20,000 people across 20 coastal districts.
This includes safety training for workers in Alang-Sosiya Shipyard in Bhavnagar District (Gujarat). The Ministry is also undertaking skill gap analysis in 23 coastal districts to identify the skilling requirements and develop a roadmap for addressing the same.
The action plan for six districts, in the first phase, has already been prepared.
To provide skilling for port & port user community, the Ministry is planning to conduct cutting-edge skill training in ports & maritime sector. It is evaluating the proposal for setting up Multi-Skill Development Centers linked to Major Ports, in collaboration with Ministry of Skill Development & Entrepreneurship.
viii. Potential Impact
The projects identified under Sagarmala Programme are expected to mobilize more than Rs.7 Lac Crore of infrastructure investment, double the share of domestic waterways (inland & coastal) in the modal mix, generate logistic cost savings of Rs.35,000-40,000 Crore per annum, boost merchandize exports by US$110 billion in the next 10 years. fii-news.com
