India's Sagarmala Program: 415 Projects, $120 Bln Investment

By Aiswarya Lakshmi March 9, 2017

Under India's prestigious Sagarmala Programme, 415 projects, at an estimated investment of approximately INR 8 Lac Crore (USD 120 Bln) , have been identified across port modernization & new port development, port connectivity enhancement, port-linked industrialization and coastal community development for phase wise implementation over the period 2015 to 2035.

As per the approved implementation plan of Sagarmala Programme, these projects are to be taken up by the relevant Central Ministries/Agencies and State Governments preferably through private or public-private partnership (PPP) mode.

As part of the Sagarmala Programme, 6 new port locations have been identified, namely - Vadhavan, Enayam, Sagar Island, Paradip Outer Harbour, Sirkazhi and Belekeri.

Increasing the share of coastal shipping and inland navigation in the transport modal mix is one of the key objectives of the Sagarmala Programme.

In order to equip ports for movement of coastal cargo, the scope of coastal berth scheme has been expanded and merged with Sagarmala Programme.

Under the scheme, the financial assistance of 50% of project cost is provided to Major Ports/State Governments for construction of Coastal Berths, Breakwater, mechanization of coastal berths and capital dredging. Rs. 152 Cr has been released for 16 projects under this scheme. In addition, Cabotage has been relaxed for a period of 5 years for specialized vessels like RO-RO, RO-PAX etc.

To augment transhipment capacity in the country, Vizhinjam (Kerala) and Enayam (Tamil Nadu) are being developed as transhipment ports.

Vizhinjam is being developed as transhipment hub under PPP mode by Government of Kerala with Viability Gap Funding from Government of India. In principle approval has been obtained for setting up a Major Port at Enayam and its DPR is under preparation.