The Logistics Headlines, New Delhi, 24th March: Shipping secretary Rajiv Kumar stated that government-approved Sagarmala is an ambitious plan for which the Ministry of Shipping has initiated many directives in the last two years. He said that they were looking ahead for developing multimodal hubs for Paradip, Vizag. There are four major pillars for the project, namely:
- Connectivity with the hinterland
- Development of coastal communities
- Need to increase port capacities and efficiencies
- Requirement to cultivate port-led industrialization
The Shipping Ministry wishes to launch 199 projects costing approximately of Rs. 3.31 lakh crore for the Sagarmala project. In 2016, Nitin Gadkari aimed to promote port-led development, which was to fetch Rs. 12 to 15 lakh crore of capital investments to bring about indirect and direct employment for about two crore people, and give a huge fillip to the nation’s economic growth.
Aims under the Sagarmala Project
It was said that projects costing at least Rs. 8 lakh crore are now identified under the Sagarmala project from national perspective plan. The project could be a game changer, and one of the biggest in history of India, as said by Gadkari. Besides new port development and port modernization, the project also assets promotion of cruise tourism, and setting up of multimodal logistics parks.
Boost to fishery sector is one of the intentions with cargo movement efficiency through waterways in the Sagarmala plan. The country comprises of 7,500 kilometre long coastline, which helps to transport 6% of the cargo via waterways against 35% by railways and 55% through roadways. Because of this proposition, cost for India’s logistics in GDP by percentage is as high as 19 when compared to just 12.5% of China.
Maharashtra Chief Minister, Mr. Fadvanis (on 20th, March 2017), had chaired a meeting for reviewing implementation of new port policy under the concerned plan, and a presentation was done on expansion of Karanja terminal, JSW Jaigarh port, Katale Shipyard, Yogayatan port, and RoRo services along with centre’s Sagarmala for Vadhwan port.
Concentration on CEZs and Industrial Competitiveness
There would be 14 Coastal Economic Zones (CEZ) through non-major and major ports of India for the government’s Make in India initiative. The steps will increase merchandise exports for the country by 110 billion and improved the industrial competitiveness, embracing 12 industrial clusters with Rs. 15,000 crores as an investment for uplifting the basic infrastructure.
These 12 prime clusters will address sectors such as discrete manufacturing, material, energy, and more to facilitate ocean mode for imports of raw material and finish products’ exports. The pursuit would follow to enhance production of steel and cement by 40 MTPA by 2025 with reduction of logistics cost by Rs. 1,000 per ton, and bettering domestic manufacturing along creation of greater coastal capacity.
According to analysis, there will be 6 discrete manufacturing sectors such as automotive, electronics, food processing, footwear, and furniture, leather products to be set up. The proposed CEZs would be named as Suryapur, Saurashta in Gujrat, Kachch, South Konkan and North Konkan in Maharashtra, Malabar in Kerela, Dakshin Kanara in Karnataka, Mannar, Poompuhar and VCIC South in Tamilnadu, Kalinga in Odisha, VCIC central and VCIC North in Andhra Pradesh, and Gaud in West Bengal.