Saturday, 13 June 2015

Sagar Mala Project

Background

  • Initiative of Vajpayee in 2003 with the objective of achieving rapid capacity expansion and modernization of Ports along India’s East and West Coast
  • Above will be done so that, India’s ports are comparable with the best global ports in terms of infrastructure, efficiency and quality of service, increasing the tonnage capacity, upgrading and creating ship building and ship repair facilities and increase the use of inland waterways for transportation. 
Objective of the project

  • To promote port-led direct and indirect development
  • To provide infrastructure to transport goods to and from ports quickly, efficiently and cost-effectively. 
    • To develop access to new development regions with intermodal solutions and promotion of the optimum modal split, enhanced connectivity with main economic centres and beyond through expansion of rail, inland water, coastal and road services. 
Sagarmala Project will address challenges by focusing on three pillars of development

  • Supporting and enabling Port-led Development through appropriate policy and institutional interventions and providing for an institutional framework for ensuring inter-agency and ministries/departments/states’ collaboration for integrated development,
  • Port Infrastructure Enhancement, including modernization and setting up of new ports
  • Efficient Evacuation to and from hinterland. 
Background:
  • Share in GDP
    • Railway - 9%
    • Roads - 6%
    • Ports - 1%
  • Make in India programme --> Increase in share of merchandise trade --> need of Sagar Mala
Problems

  • Developmental, procedural and policy related challenges 
  • Involvement of multiple agencies in development of infrastructure to promote industrialisation, trade, tourism and transportation; 
  • Presence of a dual institutional structure that has led to development of major and non-major ports as separate, unconnected entities; 
  • Limited hinterland linkages that increases the cost of transportation and cargo movement; 
  • Limited development of centres for manufacturing and urban and economic activities in the hinterland
  • Low penetration of coastal and inland shipping in India
  • Limited mechanisation and procedural bottlenecks

Things that can be done under Sagar Mala initiative are:


(i) Port-led industrialisation 

(ii) Port based urbanisation 
(iii) Port based and coastal tourism and recreational activities 
(iv) Short-sea shipping coastal shipping and Inland Waterways Transportation 
(v) Ship building, ship repair and ship recycling 
(vi) Logistics parks, warehousing, maritime zones/services 
(vii) Integration with hinterland hubs 
(viii) Offshore storage, drilling platforms 
(ix) Specialisation of ports in certain areas: energy, containers, chemicals, coal, agro products, etc. 
(x) Offshore Renewable Energy Projects with base ports for installations 

This strategy incorporates both aspects of port-led development viz. port-led direct development and port-led indirect development. 


A near relative of Sagar Mala Project is Bharat Mala Project



Extra information about Sagarmala from past notes
  1. Setup Sagarmala Development Authority (Similar to NHAI)
  2. Will get money via Maritime development cess. (5 paise per kg on cargo)
  3. Will improve ports, shipping industry, inland water transport, coastal shipping.
  4. PPP and FDI to gather more inve$tment.
  • UPA renamed it - National Maritime Development Programme --> Now back to SagarMala. :)
  • 2011 - maritime agenda 
    • 1b tn capacity(2010) --> 3.2 b tn capacity by 2020
  • It was part of  BJP‟s 2014 manifesto also.
    • China’s String of Pearls = aims to surround India by developing ports in neighbor countries and possible convert them in military base at later stage.
    • But Project Sagarmala only aims to improve India’s maritime infrastructure by modernizing existing major and minor ports of India and setting up new ports. 
  • During its regime, NDA government had taken two initiatives in maritime sector:

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