IMPACT OF SAGARMALA PROJECT ON THE COUNTRY’S MARITIME TRADE
IMPACT OF SAGARMALA PROJECT ON THE COUNTRY’S MARITIME TRADE
Sagarmala is a central sector scheme of the Ministry of Ports, Shipping, and Waterways to promote port-led development in the country. Under this scheme, the ministry provides financial assistance to the projects under 5 pillars, namely port modernization, port connectivity, port-led industrialization, coastal community development, and coastal shipping & inland water transport. Since the inception of the scheme, 6 projects of construction of coastal berths worth ₹385.5 crore have been funded under the pillar of coastal shipping & inland water transport. Out of these, 5 projects worth ₹ 320.5 crore have been completed. The completed projects have increased coastal cargo handling capacity by ~6.5 million tonnes. Further, 17 projects worth ₹852.4 crore out of 24 projects worth ₹ 1033.43 crore, funded under the port modernisation pillar, have been completed. The completed projects resulted in implementation of automation, modernisation, safety measures, and sustainable initiatives.
The above 22 completed projects have strengthened India’s maritime trade competitiveness by enhancing cargo handling capacity, promoting coastal shipping, reducing logistics costs and turnaround times, thus contributing to the country’s EXIM trade and economic growth.
Allocating funds to Sagarmala projects outweighs the associated opportunity costs. This investment would be strategically made in the projects across various pillars of Sagarmala i.e. port modernisation, port connectivity, coastal community development, coastal shipping and inland water transport, ship repair and recycling, and island development. Collectively, these pillars encompass the development of digital infrastructure, skilling and employment generation for coastal communities, inland water transport, and port-linked infrastructure to enhance EXIM trade competitiveness. This would also provide support to coastal communities and promote ancillary industries such as multi-modal logistics parks, ship repair clusters, and green hydrogen fuel hubs. These interventions would, inter alia, generate a strong multiplier effect on the national economy while significantly enhancing livelihoods, regional development, and competitiveness of the maritime sector and help in achieving the objectives of the Maritime Amrit Kaal Vision (MAKV) 2047.
This information was given by the Union Minister of Ports, Shipping, and Waterways, Shri Sarbananda Sonowal, in a written reply to the Lok Sabha.