Status of Sagarmala Project
• As a part of Sagarmala Programme, more than 800 projects at an estimated cost of around Rs. 5.48 lakh crore have been identified for implementation. Sagarmala projects includes projects from various categories such as modernisation of existing ports and terminals, new ports, terminals, RoRo & tourism jetties, enhancement of port connectivity, inland waterways, lighthouse tourism, industrialization around port, skill development, technology centres, etc.
• India is one of the fastest growing large economies in the world with a GDP growth rate of 7.3% in 2018-19 and ports play an important role in the overall economic development of the country.
• Approximately 95 % of India’s merchandise trade (by volume) passes through sea ports. Many ports in India are evolving into specialized centres of economic activities and services and are vital to sustain future economic growth of the country such as JNPT, Mundra Port, Sikka Port, Hazira Port etc.
• Last mile connectivity to the ports is one of the major constraints in smooth movement of cargo to/from the hinterland.
• Sagarmala is an ambitious national initiative aimed at bringing about a step change in India’s logistics sector performance, by unlocking the full potential of India’s coastline and waterways.
• The vision of Sagarmala is to reduce logistics cost for both domestic and EXIM cargo with optimized infrastructure investment.
• Sagarmala aspires to reduce logistics costs for EXIM and domestic cargo leading to overall cost savings of INR 35,000 to 40,000 cr. per annum. Some of this will be direct cost savings, while others are savings from inventory-handling costs resulting from time (and reduced variability) in transportation of goods, particularly containers.
• These cost savings apply to current industrial capacities as well as future coast proximate capacities for energy, material, marine and discrete industries that could come up through port-linked industrialization.
• In addition, Sagarmala aspires to reduce carbon emissions from transportation sector by 12.5 MT/annum
Source: THE HINDU.