Sagarmala Program

In News 

• The Ministry of Ports, Shipping and Waterways organised an event to commemorate the successful seven years of Sagarmala program. 

Objectives and Need for Port-Led Development in India

• To  address infrastructural and operational challenges
  • India is one of the fastest growing large economies in the world with a GDP growth rate of 7.3% in 2018-19 and ports play an important role in the overall economic development of the country. 
    • Approximately 95 % of India’s merchandise trade (by volume) passes through sea ports. 
  • Many ports in India are evolving into specialised centres of economic activities and services and are vital to sustain future economic growth of the country such as JNPT, Mundra Port, Sikka Port, Hazira Port etc.
    • However, Indian ports still have to address infrastructural and operational challenges before they graduate to the next level. 
• Last mile connectivity to the ports
  • It  is one of the major constraints in smooth movement of cargo to/from the hinterland. 
  • Around 87% of Indian freight uses either road or rail for transportation of goods. 
• Any programme for port-led development needs to consider the above mentioned factors to effectively harness the potential of India’s long coastline.
• It is aimed at bringing about a step change in India’s logistics sector performance, by unlocking the full potential of India’s coastline and waterway

About Sagarmala Programme

• The concept of Sagarmala was approved by the Union Cabinet on 25th March 2015.
• It is the flagship programme of the Ministry of Ports, Shipping and  Waterways to promote port-led development in the country through harnessing India’s 7,500 km long coastline, 14,500 km of potentially navigable waterways and strategic location on key international maritime trade routes. 
• The main vision of the Sagarmala Programme is to reduce logistics cost for EXIM and domestic trade with minimal infrastructure investment.
• The program has followed a stepped approach of implementation with first attempt on implementing the maritime projects through Public Private Partnership (PPP) wherever feasible. 
• Port-led development focuses on logistics intensive industries (where transportation either represents a high proportion of costs, or timely logistics are a critical success factor). 
• Implementation 
  • To implement this, State governments would set up State Sagarmala committees, headed by the chief minister or the minister in charge of ports. 
  • At the central level, a Sagarmala Development Company (SDC) will be set up to provide equity support to assist various special purpose vehicles (SPVs) set up for various projects.

The Four Pillars of Sagarmala:

Image Courtesy :Sagarmala.gov.in

Objectives

Image Courtesy :Sagarmala.gov.in

Performance

• The data shows 802 projects worth Rs. 5.48 lakh Crore under the Sagarmala program targeted to be executed by 2035 out of which 194 projects worth Rs. 99,000 Crore have been completed. 
• A total of 29 projects worth Rs. 45,000 Crore have been successfully implemented under PPP model, thus, reducing the financial burden on the exchequer. 
• The skill centres developed under Sagarmala. Centre of Excellence in Maritime and Shipbuilding (CEMS) which has trained over 5000 candidates in 50+ courses since inception. 
• Additionally, Deen Dayal Upadhyay- Grameen Kaushalya Yojna Sagarmala Convergence Programme, under Ministry of Rural Development, to enable skilling of coastal population, trained more than 1,900 candidates.

Issues /Challenges

• The increased commercial activities through new ports and petrochemical hubs planned on the coast would hit fishing and also increase the threat of extreme weather events .
  • Chemical pollution on the coast has already put the livelihoods of one lakh traditional fishermen under risk.
• Port development is  threatening the lake, and also the nesting grounds of various species .
• Port Developments projects are facing a serious financial crisis.

Way Forward 

• Coastlines are  densely populated zones and vulnerable to storms, tidal surges, floods and the occasional tsunami. 
• Any major intervention should be made only after serious consideration of the multi-faceted implications and a cost-benefit analysis that goes far beyond just numbers and economic evaluation.
• The country urgently needs a port development policy in keeping with the cargo volume and profile. 
• Successful implementation can be a game-changer in terms of savings, employment generation, and value creation .
• The private sector would need to play a huge role if such mammoth investment is to materialise. 

Source:PIB