The main aims of Sagarmala Project

The main aims of Sagarmala Project

Question - On a recent visit to Mauritius, PM Narendra Modi indicated the two nations should collaborate for a Blue Revolution. Discuss the Sagarmala Project in this context.

Union Cabinet has recently given an in-principle approval for the Sagarmala project.

Aims of Sagarmala Project

• This project aims to promote port led direct as well as indirect development

• Aim is also to provide infrastructure to transport goods from and to ports in a quick and cost efficient manner

• Sagarmala project aims to access new development regions with intermodal solutions and promoting optimal modal split

• It also aims at enhancing connectivity in main economic centres and across via expansion of basic infrastructure such as rail, inland water, coastal and road services

• Enhancing capacity of ports and modernising them

• Port led economic development through growth of infrastructural assets and linkages for transport modes

• Establishment of logistics hubs and establishment of industries as well as manufacturing centres to be served through ports in domestic and international trade

• The project also aims at simplifying procedures at ports for moving cargo and using electronic channels for information exchange leading to rapid, tension free movement of cargo

Three Pillars of Development:

The Sagarmala project is based on the following three pillars of development:

1. Support and enhancement of port led development through policies and institutional interventions which are appropriate and provide for an institutional framework for inter-agency collaboration and coordination between ministries, departments and states

2. Modernisation and establishment of fresh ports through Port Infrastructure Enhancement

3. Effective evacuation from and to hinterland

The main objectives of the project are:

Facts and Stats

• Funds needed for project implementation at the initial phase of the Sagarmala project are pegged at INR 692 crore for 2015-2016

• Currently, Indian Ports manage more than 90% of India’s complete EXIM trade volume

• Current proportion of merchandise trade in GDP of India is 42% as against 75 and 70 percent for advanced nations such as Germany and the EU respectively

• India also has less port development so far; with 9% of rail and 6% share of roads in GDP, the share of ports is only 1%

• Gujarat is the leader among states when it comes to port development with 8.15% growth per annum in the 1990s and more than 10% per annum thereafter from a port led development model.