INDIAN INFRASTRUCTURE SERIES – III : SAGARMALA – An Update[May -2018]

The Indian Government has planned to spend nearly 8 trillion in the mega initiative “SAGARMALA”. This project is divided into four parts i.e. Port Modernization, Connectivity Enhancement, Port-linked Industrialization and Coastal Community Development.

Port modernization is the process where it the ports modifications will be done over the period of 20 years.

Click here for our earlier report defining the need, history and mechanism of the Sagarmala Project. 

This report is a short follow-up report on the project, which talks about the time-based outlay and future aspects of the four parts of Sagarmala.

PORT MODERNISATION:

The main focus of the Port Modernization Module is to develop the capacity of the ports so that the ports can be more efficient. Those ports which have been underutilized over the years can be re-developed to meet the demand of the cargo transport in India.

The deadline for these projects is FY 2035 which is set by the Government. All these developments modernization and new port developments will result in the increase in operational efficiency the current and upcoming ports.

CONNECTIVITY ENHANCEMENT

 Government projects such as Inland Container Depots, Jal Marg Vikas Project, Dedicated Freight Corridors (DFCs), Bharatmala initiative and the plan for pipeline expansion will provide an impetus to the development of multi-modal transport hubs, helping reduce the cost of freight transportation.

The total projects under this scheme is 170 of which 62 are already finished and remaining will be done over a period of 20 years i.e. till FY 2036.

PORT LINKED INDUSTRIALIZATION

Coastal Economic Zones (CEZs) have been proposed as economic regions hosting industrial clusters. With the establishment of CEZs the Government aims to reduce time and cost for the imports and exports to reach marketplaces. It also creates employment opportunities for 10 million people respectively.

COASTAL COMMUNITY DEVELOPMENT

The government allocated USD 648 Million in order to develop the coastal community in India.  The coastal development includes skill development, cold chain development, fisheries, aqua culture, local tourism and recreational facilities.

NATIONAL WATERWAYS OF INDIA

With the increase in the cost of maintaining roads and other forms of transportation, government is focusing on developing waterways in order to reap the benefit of the cheap source of transportation, unlike roadways and airways where the cost is higher.

The government has planned to develop 5 national waterways over the period of 20 years. As of the current year only works related to NW1 has been started and for remaining it has not yet started and it will be operational over a period of time.

There are certain types of risks aligned with this project i.e. political instability in the country, natural disasters like tsunami and it may impact the fisheries as it affects the fishes in the different canals and rivers as well. Ultimately we can conclude that there is a huge scope for waterways in future.

We will continually update this space with more statistics as and when we get them.

-Report By Mr.Sai Pradeep under the guidance of Mr. Janak Shah