Sagarmala Project receives 'in-principle' approval from Cabinet

Fund requirement for implementation of various projects within Sagarmala Project is pegged at Rs 692 cr for 2015-16

The Sagarmala project, which seeks to develop a string of ports around India’s coast, received an ‘in-principle’ approval from the Cabinet on Wednesday. Fund requirement for starting the implementation of various projects within Sagarmala Project is pegged at Rs 692 crore for 2015-16. Further requirement of funds will be finalised after completion of Detailed Master Plan for Coastal Economic Zones for future years.

The previous National Democratic Alliance government under Atal Bihari Vajpayee (1998-2004) had initiated the ambitious project. The current NDA government under Narendra Modi has revived it.

The prime objective of the Sagarmala project is to promote port-led direct and indirect development and provide infrastructure to transport goods to and from ports quickly, efficiently and cost-effectively. For a comprehensive and integrated planning for Sagarmala, a National Perspective Plan (NPP) for the entire coastline shall be prepared within six months which will identify potential geographical regions to be called Coastal Economic Zones (CEZs).

A central Sagarmala Development Company (SDC) is also to be formed under the Companies Act. Its major role will be to provide equity for the formation of Special Purpose Vehicles (SPVs) at the state or port level. Operational autonomy for implementation of port projects will rest with states and the port-formed SPVs.

A National Sagarmala Apex Committee (NSAC) is envisaged for overall policy guidance and high level coordination, and to review various aspects of planning and implementation of the plan and projects. The NSAC shall be chaired by the Minister incharge of Shipping, with Cabinet Ministers from stakeholder Ministries and Chief Ministers/Ministers incharge of ports of maritime states as members.

All efforts would be made to implement those projects through the private sector and through Public Private Participation (PPP) wherever feasible.