Source: Mint
Context:
The Indian government is revamping the Sagarmala initiative into a 10-year, ₹75,000-crore programme— Sagarmala 2.0 to position India as a global maritime hub. The move aligns with the government’s broader maritime development strategy and complements the recently announced ₹70,000-crore maritime package.
Objectives of Sagarmala 2.0:
- Port Modernization: Upgrading existing ports to world-class standards to improve efficiency and global competitiveness.
- Shipbuilding & Repairs: Enhancing domestic shipbuilding, repair, and recycling infrastructure, promoting domestic ship ownership.
- Inland Waterways & Coastal Development: Extending financial support to state governments for developing inland waterways and coastal regions.
- Investment Mobilization: Leverage an estimated ₹20 trillion in investments over the next decade.
- Project Coverage: Expected to support more projects than Phase 1, which had over 800 projects.
Financial Details:
- Initial budgetary support was ₹40,000 crore, now proposed to be scaled up to ₹75,000 crore.
- Complementary programmes under the ₹70,000-crore package include:
- Maritime Development Fund (MDF): ₹25,000 crore
- Shipbuilding Financial Assistance Scheme (SBFA): ₹20,000 crore
- Shipping Cluster Development Programme: ₹20,000 crore
About Sagarmala Initiative:
Launch & Objective
- Launched in 2015 by the Government of India.
- Aims to modernize India’s ports, enhance coastal shipping, and promote port-led industrialization.
- Focuses on leveraging India’s 7,500 km coastline and 14,500 km of navigable waterways to boost trade and logistics efficiency.
Key Goals
- Port Modernisation: Upgrade and mechanize major and minor ports to handle larger cargo efficiently.
- Port Connectivity: Develop rail, road, and inland waterway connections to ports, reducing logistics costs.
- Port-Led Industrialization: Establish coastal economic zones (CEZs) and industrial clusters near ports to attract investment.
- Coastal Community Development: Generate employment and improve livelihoods in coastal areas.
- Enhancing Exports: Improve turnaround time and reduce costs to make Indian exports globally competitive.
Implementation Pillars
- Infrastructure Modernization: Deepening, mechanization, and automation of ports.
- Connectivity Projects: Roads, rail links, and multimodal logistics parks connecting hinterlands to ports.
- Coastal Economic Development: Industrial corridors and SEZs near ports to encourage manufacturing and trade.
- Skill Development & Employment: Training programs for maritime and logistics sectors.
