Port-led Industrialization

Vision of the Sagarmala Programme is to reduce logistics cost and time for the movement of EXIM and domestic cargo. Development of port-proximate industrial capacities near the coast, in future, is a step in this direction. In this regard, the concepts of Coastal Economic Zones (CEZs), Coastal Economic Units (CEUs), Port-Linked Industrial & Maritime Clusters and Smart Industrial Port Cities have been introduced.

  • 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.
  • 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.

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 and Detailed Master Plans will be prepared for 4 pilot CEZs (in Gujarat, Maharashtra, Tamil Nadu and Andhra Pradesh) in the first phase of development.

An Inter-Ministerial Committee (IMC) was constituted under the aegis of NITI Aayog for development of CEZs in India. As recommended by IMC, the institutional framework for development of CEZs would be similar to the institutional framework adopted by DMICDC for development of industrial corridors and industrial nodes.

The development of CEZs will be taken up in phases wherein the first phase of development would focus on developing two large CEZs as pilots.

Coastal Economic Zones Planned under Sagarmala:

Coastal Economic Zones Planned under Sagarmala:
S.No. CEZ State Districts Covered Linkage Ports
1 Kachch Gujarat Kachchh Deen Dayal, Mundra
2 Saurashtra Gujarat Junagarh, Amreli, Bhavnagar, Ahmedabad Pipavav, Sikka
3 Suryapur Gujarat Bharuch, Surat, Navsari, Valsad Dahej, Hazira
4 North Konkan Maharashtra Nashik, Thane, Mumbai, Pune, Raigarh JNPT, Mumbai
5 South Konkan Maharashtra, Goa Ratnagiri, Sindhudurg, North Goa, South Goa Dighi, Jaigarh, Mormugao
6 Dakshin Kanara Karnataka Udupi, Dakshin Kannada, Kodagu, Mysore New Mangalore
7 Malabar Kerala Ernakulam, Alappuzha Kollam, Thiruvananthapuram Cochin
8 Mannar Tamil Nadu Kanyakumari, Tirunelveli, Thoothukudi VOCPT (Tuticorin)
9 Poompuhar Tamil Nadu Cuddalore, Perambalur, Ariyalur, Tiruchirappallu, Thanjavur, Thiruvarur, Nagapattinam Cuddalore
10 VCIC South Tamil Nadu Thiruvallur, Chennai, Kancheepuram Chennai, Kamarajar, Katupalli
11 VCIC Central Andhra Pradesh Chittoor, Nellore Krishnapatnam
12 VCIC North Andhra Pradesh Guntur, Krishna, West Godavari, East Godavari, Visakhapatnam, Vizianagaram, Srikakulam Vizag, Kakinada
13 Kalinga Odisha Puri, Jagatsinghapur, Cuttack, Kendrapara, Jajapur, Bhadrak Paradip, Dhamara
14 Gaud West Bengal Purba Medinipur, South twenty Parganas Kolkata, Haldia

Vision of the Sagarmala Programme is to reduce logistics cost and time for the movement of EXIM and domestic cargo and development of port-proximate future industrial capacities near the coast is a step in this direction. In this regard, 35 potential port-linked industrial clusters across three sectors, namely – Energy, Materials and Discrete Manufacturing, have been identified. These include 12 bulk clusters for basic input industries such as Power, Refineries & Petrochemicals, Steel and Cement and 23 discrete manufacturing clusters, in the labour intensive sectors of Electronics, Apparel, Leather Products, Furniture and Food-Processing etc. The master plans for the proposed Maritime Clusters in Gujarat and Tamil Nadu have been prepared.

Industrial & Maritime Clusters Planned under Sagarmala

Type of Cluster Total Potential Location
# Rs. Cr  
Bulk Petrochemical 4 18,080 Ennore (Tamil Nadu), Gujarat, Kakinada (AP)
Power 4 108,897 Krishnapatanam (AP), Ennore (Tamil Nadu), Maharashtra, Tuticorin (Tamil Nadu)
Steel 2 154,000 Ennore (Tamil Nadu), Southern Maharashtra
Cement 2 49,000 Gujarat, Andhra Pradesh
Discrete Manufacturing Apparel 3 9,963 Saurashtra (Gujarat), Central Andhra Pradesh and Vidarbha (Maharashtra)
Leather & Footwear 3 5,640 Bihar, Tamil Nadu, West Bengal
Food Processing 3 387 Satara (Maharashtra), Kakinada (AP), Andhra Pradesh
Furniture 2 4,516 Kutch (Gujarat), Bihar
Electronics 11 50,005 North Maharashtra, Velum Teluka (Goa), Tamil Nadu, AP, Gujarat, Parganas, West Bengal, Bhubneshwar (Odisha), Ernakulam (Kerala), Tunda (Gujarat), Chittor (AP), Tirupati (AP)
Auto 1 4,465 Sanand (Gujarat)
Maritime Maritime 2 900 Tamil Nadu
Total 37 405,854  

Further, development of a SEZ at JNPT (cost: Rs. 476 Cr) and Smart Industrial Port City (SIPC) at Paradip (cost: Rs. 2,770 Cr) is in progress. SIPC at Kandla (cost: Rs. 1,147 Cr) and Coastal Employment Units (CEUs) at VoCPT and KPL are also under development.