FAQs

Sagarmala Development Company Limited (SDCL)

The following are the Objectives of the Sagarmala Development Company Limited:

  • Develop & formulate projects emanating from the National Perspective Plan (NPP) of Sagarmala
  • Assist project SPVs set up by Central Line Ministries / State Governments/State Maritime Boards/Ports etc. for projects in alignment with Sagarmala objectives
  • Provide funding window for residual projects that cannot be funded by any other means/mode
  • Prepare the Detailed Master Plans for the Coastal Economic Zones (CEZs) identified as part of the National Perspective Plan
  • Raise funds from multi-lateral and bilateral agencies as debt/equity (as long term capital), as per the project requirements

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The Sagarmala Development Company Limited (SDCL) has been incorporated on 31st August 2016 under the Companies Act, 2013, after obtaining approval of the Union Cabinet on 20th July 2016. SDCL was set up under the administrative control of Ministry of Shipping with an initial Authorized Share Capital of Rs. 1,000 Crore and a Subscribed Share Capital of Rs. 250 Crore.

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SDCL evaluates projects on the basis of the Detailed Project Report submitted by the project proponent and along the guidelines for funding under the Sagarmala Programme.

The Format for the Detailed Project Report can be found in the Annexure I of the Sagarmala Funding Guidelines:

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Transshipment

The following initiatives have been taken under the Sagarmala Program to increase volume of transshipment from India:

Relaxation of cabotage for laden transshipment containers and coastal empty containers

  1. Engagement with Customs for streamlining process at all ports
  2. Announcement of discounts to coastal feeder vessels by various ports
  3. Incorporation of ‘ease of doing business’ practices in standard transshipment processes
  4. Workshop on Transshipment conducted by Ministry of Shipping in Mumbai with all important stakeholders i.e. shipping lines, ports, customs, terminal operators, and INSA.

Sagarmala Overview

The following initiatives are planned under the port-modernization pillar of the Sagarmala Programme:

  • Project Unnati - Operational Efficiency Improvement at Ports
  • Capacity Expansion of existing Major Ports
  • New Port Development

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The Vision of the Sagarmala Programme is to reduce logistics cost for EXIM and domestic trade with minimal infrastructure investment.

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For promoting port-led industrialization, 14 Coastal Economic Zones (CEZs) covering all the Maritime States and Union Territories have been proposed. CEZ perspective plans have been prepared for all 14 CEZs.

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As part of Sagarmala Programme, more than 577 projects (Cost: Rs. 8.57 Lacs Cr.) have been identified for implementation, during 2015-2035, across the areas of port modernization & new port development, port connectivity enhancement, port-linked industrialization and coastal community development. As of 31-Mar-2018, a total of 492 projects (costing around Rs. 4.25 Lac Crore) were under various stages of implementation, development and completion

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Under Sagarmala Programme, endeavor is to provide enhanced connectivity between the ports and the domestic production/consumption centres. More than 210 connectivity projects at an estimated investment of more than Rs. 2.44 Lac Crore have been identified.

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The institutional framework for implementing the Sagarmala Programme is designed to create a coordinating role for the Central Government. It aims to provide a platform for the Central, State Governments and Local Authorities to work in tandem and coordinate under the established principles of “cooperative federalism” in order to achieve the objectives of the Sagarmala Programme and ensure port-led development. For more nectivity enhancement, port-linked industrialization and coastal community development. As of 31-Mar-2018, a total of 492 projects (costing around Rs. 4.25 Lac Crore) were under various stages of implementation, development and completion

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Development of coastal communities is an essential objective of the Sagarmala Programme effected through marine sector related activities like:

  • Fisheries
  • Maritime tourism
  • Skill development.

Development of cruise tourism and lighthouse tourism are other activities which are being actively considered under Sagarmala Programme.

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As part of Sagarmala, high potential port-linked industries have been identified which include bulk and discrete manufacturing. Bulk manufacturing industries include steel and steel-multiplier, cement, refining, petrochemical and power while discrete manufacturing industries include electronics, apparel, furniture, footwear and food processing. Cumulatively, these sectors have the potential to create 40 lakh direct and 60 lakh indirect jobs by 2025.

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The four pillars of the Sagarmala Programme are:

  1. Port Modernization & New Port Development: De-bottlenecking and capacity expansion of existing ports and development of new greenfield ports
  2. Port Connectivity Enhancement: Enhancing the connectivity of the ports to the hinterland, optimizing cost and time of cargo movement through multi-modal logistics solutions including domestic waterways (inland water transport and coastal shipping)
  3. Port-linked Industrialization: Developing port-proximate industrial clusters and Coastal Economic Zones to reduce logistics cost and time of EXIM and domestic cargo
  4. Coastal Community Development: Promoting sustainable development of coastal communities through skill development & livelihood generation activities, fisheries development, coastal tourism etc.

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The Sagarmala Programme is a first of its kind port-led development programme in India. The Sagarmala Programme plans to bring in development around India’s coastal regions based on the following four pillars:

  1. Port Modernization & New Port Development
  2. Port Connectivity Enhancement
  3. Port-linked Industrialization
  4. Coastal Community Development.

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Projects Funded under Sagarmala

A total of 60 projects have been completed since the Sagarmala Programme was initiated, at a total cost of Rs. 11,336 Cr

The year-wise break-up of Sagarmala projects under development and implementation is tabulated at

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Various projects are under development and implementation as a part of Sagarmala and roughly 194 projects are expected to be completed in 2018-19, 65 projects are expected to be completed in 2019-20, 81 projects are expected to be completed within 2021-25 and 12 projects are expected to be completed within 2025-35

There are total 77 projects (worth Rs.4,553 Cr.) which are being developed and maintained by Ministry of Shipping.

As on 31st March 2018, there are a total of 77 projects (worth Rs.4,553 Cr.) being developed and maintained by Ministry of Shipping of which Rs.1,473 has been sanctioned and Rs.872 Cr has been released for these projects.

Till date, Rs. 825 Cr has already been released for the development and implementation of 64 projects for a total project cost of Rs 4,091 Cr. The projects include various infrastructure projects, coastal berth projects, fishery harbors and skill development projects. These projects are being implemented by relevant Central Ministries, State Governments, Ports and other agencies. These include unique and innovative projects like Gogha-Dahej RO-Pax Ferry Services Project and RO-RO Services Project at Mandwa

As per the concept approved by the Cabinet, implementation of the projects shall be done by the Central Line Ministries, State Governments / State Maritime Boards and SPVs which may be set up at the State-level or port-level.

As of 31st March 2018, there are a total 80 projects (worth Rs.13,701) have been completed since its inception. Also there are 443 projects (worth Rs.4,19,119) which are under implementation or under development.

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Coastal Community Development

For promoting tourism in maritime states under Sagarmala, projects have been identified in convergence with Ministry of Tourism and tourism development departments of maritime state governments. Key coastal tourism projects include:

  • Development of Coastal Circuits under Swadesh Darshan Scheme of Ministry of Tourism
  • Development of infrastructure for promoting Cruise tourism
  • Development of lighthouses
  • National Maritime Heritage Museum Complex at Lothal
  • Underwater viewing gallery and restaurant at Beyt Dwarka

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Development of coastal communities through Marine sector related activities like fisheries, maritime tourism and corresponding skill development is an essential objective of the Sagarmala Programme. Development of cruise tourism and lighthouse tourism are other activities which are being actively considered under Sagarmala Programme.

Following are the key most aspects or objectives of Coastal Community Development under Sagarmala Programme :-

  • Fisheries
  • Coastal tourism
  • Skill development.
  • these plans available here:Click here

21 Coastal Districts have been completed and domain ministries & concerned state governments have been asked to implement the district action plans

Sr. No. State/UT No. of Districts Districts Name
1 Gujarat 2 Kachchh, Bhavnagar
2 Maharashtra 2 Mumbai, Raigad
3 Goa 2 North Goa and South Goa
4 Karnataka 2 Dakshina Kannada, Udupi
5 Kerala 2 Ernakulam, Kozhikode
6 Tamil Nadu 2 Thiruvallur, Thoothukudi
7 Andhra Pradesh 2 Vishakapatnam, East Godavari
8 Odisha 2 Ganjam, Jagatsinhpur
9 West Bengal 2 Poorba Midnapore, 24 South Parganas
10 Puducherry 1
11 Andaman 1
12 Lakshadweep 1
Total 21

Ministry is part-funding fishing harbour projects in convergence with Department of Animal Husbandry and Dairying (DADF). As of 31st March 2018, there are 27 fishing harbor projects (cost: Rs. 4,068 Cr) identified under Sagarmala, 13 projects (cost: Rs. 1,189 Cr) have been funded under Sagarmala.

Coastal Economic Zone (CEZ)

Perspective plans for the 14 CEZ identified under the Sagarmala National Perspective Plan have been prepared.

these plans available here:Click here

For promoting port-led industrialization, 14 Coastal Economic Zones (CEZs) covering all the Maritime States and Union Territories have been proposed. Perspective plans for all the 14 CEZs have been prepared.

A total of 5,664 persons have been trained till March, 2018. Further, a total of 2,290 persons have been trained in 2018-19 and targeting for 3,000 persons to be trained by 2018-19.

Coastal Economic Zones (CEZs): CEZs could be spatial economic regions comprising of a group of coastal districts or districts with a strong linkage to the ports in that region. CEZs are also envisaged to tap synergies with the planned industrial corridor projects

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Coastal Economic Units (CEUs): CEUs will be specific industrial estate projects with a demarcated boundary similar to the DMIC nodes. The CEUs will house the industrial clusters / projects proposed within the CEZ.

Each CEZ will consist of multiple CEUs and more than one industrial cluster can be housed within a CEU. Within each industrial cluster there can be several manufacturing units. To accelerate the CEU development process, it is proposed that CEUs be prioritized in locations where land parcels are available in areas close to a deep draught port and with strong potential for manufacturing.

Cabotage

The cabotage rule under section 406 of the of the Merchant Shipping Act 1958 has relaxed the licencing requirement for ships chartered by Indian entities to allow coastal movement of agricultural, horticultural, fisheries, animal produce commodities and fertilizers. The purpose of these relaxations is to enable farmers to access a larger market profitably and promote trade and ease of doing business in India.
The cabotage rule under section 407 of the of the Merchant Shipping Act 1958 has relaxed the licencing requirements of foreign flag ships for (i) transportation of EXIM laden containers for transhipment purposes in India, or (ii) transportation of empty containers. The purpose of these relaxations is to arrest the increasing share of Indian container cargo transhipped at foreign ports.

Coastal Shipping

In 2014-2015, the total cargo transported by coastal shipping was 83 million tonnes whereas in 2017-2018 the same is estimated at 107 million tonnes. An estimated 8.8 percent CAGR growth was recorded over the last 3 years, as against 4.5 percent CAGR growth in the preceding 3 years.

The current percentage of coastal shipping in India’s modal mix is 6%. It is an aim of the Sagarmala program to increase this to 12% by 2025

The following initiatives have been taken under the Sagarmala Program to promote coastal shipping

  1. Cabotage relaxed for 5 years for specialized vessels (RO-RO, RO-PAX)
  2. Inter-Ministerial Committee (IMC) constituted to develop a strategy and roadmap for coastal shipping of coal and other commodities /product
  3. Coastal Berth Scheme has been implemented for financial assistance to develop infrastructure for coastal cargo movement at ports
  4. Customs & excise duty exemption on bunker fuel for coastal container vessels
  5. Abatement of service tax on coastal shipping
  6. Green channel clearance for coastal cargo
  7. Exemption on lighthouse dues for coastal ships

For capacity addition in Coastal Shipping, the Sagarmala Programme is considering planned investment of nearly Rs. 1.5 lakh crores. These projects include new port development, capacity addition at existing ports, and operational improvements at existing ports

The Coastal Berth Scheme is a key initiative under the Sagarmala Programme to promote the development of dedicated infrastructure for coastal shipping of goods and passengers across India’s Major and Non-Major Ports. The scheme provides financial aid for projects which promote coastal shipping at Indian ports. So far, 21 projects worth Rs. 729.6 Cr have been provided financial assistance of Rs. 205 Cr. under this scheme.

Funding Under Sagarmala

Projects considered for funding under Sagarmala Programme will be funded either by providing equity support (SPV route) from the Sagarmala Development Company Limited (SDCL) or shall be funded (other than equity support) from the budget of Ministry of Shipping through grant-in-aid mode.

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Projects which are aligned to the objectives of the Sagarmala Programme (port modernization &efficiency improvement, ports connectivity enhancement, port-led industrialization and coastal community development) will be considered for funding. Projects considered for funding (other than equity support) under the Sagarmala Programme's budget shall be appraised and approved under the extant instructions and guidelines of the Ministry of Finance.

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