Sagarmala envisions 5 new major ports, Rs400,000-cr investment: Modi

Prime Minister Narendra Modi today released the National Perspective Plan detailing the contours of Sagarmala, the flagship programme of the government that seeks to mobilise Rs4,00,000-crore of investments to promote port-led development in the country.

Addressing the inaugural session of the Maritime India Summit in Mumbai today, the prime minister said India's 7,500 km coastline offers a huge investment opportunity. "Apart from the length of the coastline, India's maritime potential also lies in its strategic location on all major shipping highways. In addition, we have an expansive and productive hinterland, through which flows a network of mighty rivers," Modi added.

Elaborating on the measures taken by his government to promote ease of doing business under 'Make In India' programme, the prime minister said five new ports are planned to meet the increasing demand of the Exim trade which will rise in proportion with the fast-growing Indian economy.

He said India wants to modernise ports and integrate them with SEZs, port-based smart cities, industrial parks, warehouses, logistics parks. Modi said the ministry of shipping is showcasing about 250 projects with investment opportunity in the maritime sector. These projects include various infrastructure development opportunities in 12 major ports, projects in eight maritime states and other agencies.

The prime minister also informed the port sector gathering from around the world, that India was also promoting coastal shipping in a big way and developing 14,000km of navigable inland waterways in the country. "My government is committed to integration in infrastructure. We are also committed to creating an enabling environment for investors and to facilitate investments with an open mind," Modi asserted.

The prime minister said Sagarmala programme envisions substantially reducing export-import and domestic trade costs with a minimal investment.

The National Perspective Plan for port-led development has been crafted after detailed consultations with key stakeholders in the central and state governments, public sector companies as well as private players from shipping, ports, ship-building, power, cement and steel sectors.

Talking to newspersons later, union minister of shipping, road transport and highways, Nitin Gadkari, said promoting water transportation is priority for the government as it will considerably reduce the logistics cost which is very high in India compared to China and European nations.

The report estimates that the programme could lead to annual logistics cost savings of close to Rs35,000 crore and boost India's merchandise exports to $110 billion by 2025. About 10 million new jobs are estimated to be created, of which 4 million will be direct employment.

This plan is based on four strategic levers – optimizing multi-modal transport to reduce the cost of domestic cargo, minimising the time and cost of export-import cargo logistics, lowering costs for bulk industries by locating them closer to the coast, and improving export competitiveness by locating discrete manufacturing clusters near ports.

With a coastline of about 7,500 km covering 13 states and union territories, India enjoys a strategic location on key international trade routes. Nations like the United States, Japan, Korea and more recently, China, have leveraged their coastline and waterways to drive industrial development. The Sagarmala programme, the flagship programme of the ministry of shipping, aims to replicate these successes in India.

In India, the potential for port-led development has for long been constrained by inadequate and poor port capacity as well as underutilisation of transportation by waterways India, although waterways are significantly cheaper compared to road and railways.

The Sagarmala National Perspective Plan identifies specific opportunities for transportation of commodities such as thermal coal, fertilisers, foodgrains, cement and steel by coastal shipping and inland waterways.

Sagarmala aims to deliver impact through over 150 projects and initiatives in four broad areas. To modernise India's port infrastructure, five to six new ports have been proposed to be built. Additionally over 40 port-capacity enhancement projects will be taken up. Besides increasing capacity, these projects will result in a more modern port infrastructure through the mechanization of berths and deepening of drafts to accommodate larger vessels.

Another focus area is port connectivity, where over 80 projects are being planned. These include connectivity infrastructure projects like a heavy-haul rail corridor to evacuate large volumes of coal in Odisha, freight-friendly expressways to enable efficient movement of containers on key routes, and the development of strategic inland waterways.

The third set of projects aims to tap into the potential of port-led industrialisation to boost industrial and export growth along the coastline. This will be realised through 14 Coastal Economic Zones (CEZs) along the coastline, each of which will house a number of industrial clusters.

The clusters will have industries from the energy, bulk materials as well as discrete manufacturing segments, all of which will be able to use high-quality infrastructure which is fully-integrated with the corresponding ports.

Finally, the potential of coastal communities will be harnessed by focused skill-development to support port-led industrialisation. The set of initiatives under this head also includes developing opportunities for fishermen and other coastal communities as well as development of the numerous islands along India's coastline. In terms of economic impact, the programme envisages investments of close to Rs4,00,000 crore to flow into infrastructure.