What is Sagarmala Project?
Historical Background
Key Points
11 points- 1.
The project has four key pillars: Port Modernization & New Port Development, Port Connectivity Enhancement, Port-led Industrialization, and Coastal Community Development. Each pillar addresses a specific aspect of maritime infrastructure and aims to create a holistic ecosystem for port-led growth.
- 2.
Port Modernization & New Port Development involves upgrading existing ports to increase their capacity and efficiency, as well as developing new greenfield ports to handle growing cargo traffic. For example, the Jawaharlal Nehru Port (JNPT) in Mumbai has undergone significant modernization to handle larger vessels and increase throughput.
- 3.
Port Connectivity Enhancement focuses on improving the linkages between ports and the hinterland through rail, road, inland waterways, and coastal shipping. This reduces transportation costs and time. The development of dedicated freight corridors is a key component of this pillar.
- 4.
Port-led Industrialization aims to promote the development of industries near ports to leverage their proximity to global markets and reduce transportation costs. This includes the establishment of special economic zones (SEZs) and industrial clusters near ports. For instance, the development of petroleum, chemical, and petrochemical investment regions (PCPIRs) near ports like Paradip in Odisha.
- 5.
Coastal Community Development focuses on improving the livelihoods and infrastructure of coastal communities through skill development, fisheries development, and tourism promotion. This ensures that the benefits of port-led development reach the local population. For example, initiatives to promote eco-tourism in coastal regions of Kerala.
- 6.
The project aims to increase the share of coastal shipping and inland waterways in India's modal mix from the current 6% to 12% by 2047. This shift will reduce logistics costs and carbon emissions.
- 7.
A key component is the development of Coastal Economic Zones (CEZs), which are industrial clusters located near ports to promote manufacturing and exports. These CEZs are expected to attract significant investment and create employment opportunities.
- 8.
The National Waterways Act, 2016 declared 111 waterways as national waterways, facilitating the development of inland water transport. This is crucial for improving connectivity and reducing congestion on roads and railways.
- 9.
The project promotes the use of green technologies and sustainable practices in port operations to reduce environmental impact. This includes the adoption of renewable energy sources and the implementation of emission control measures.
- 10.
A recent initiative is the Container Manufacturing Assistance Scheme (CMAS) with an outlay of ₹10,000 crore to establish a globally competitive container manufacturing ecosystem in India. This aims to reduce import dependence and boost domestic manufacturing.
- 11.
The project emphasizes skill development and training to create a skilled workforce for the maritime sector. This includes the establishment of maritime training institutes and the provision of scholarships for students pursuing maritime education.
Visual Insights
Sagarmala Project: Key Pillars
Overview of the Sagarmala Project's main components and their interconnections.
Sagarmala Project
- ●Port Modernization & New Port Development
- ●Port Connectivity Enhancement
- ●Port-led Industrialization
- ●Coastal Community Development
Sagarmala Project: Key Milestones
Timeline of key events and developments related to the Sagarmala Project.
The Sagarmala Project builds upon previous maritime initiatives, aiming for comprehensive port-led development.
- 2015Sagarmala Project Launched
- 2016National Waterways Act, 2016
- 2021Major Port Authorities Act, 2021
- 2024₹10,000 crore Scheme for Container Manufacturing
- 2024Plan to Operationalize 20 New National Waterways
- 2024-25Cargo Movement on Waterways Reaches 145.5 Million Metric Tonnes
- 2028Sunset Clause Extended for Customs Duty Exemption on Import of Small Vessels
- 2047Target to Increase Waterways Share to 12%
Recent Developments
9 developmentsIn 2024, the Union Budget allocated significant funds for the development of the maritime sector, including a ₹10,000 crore scheme for container manufacturing.
In 2024, the government announced plans to operationalize 20 new National Waterways over the next five years, further expanding the national network and enabling greener, cost-effective cargo movement.
Cargo movement on inland waterways has increased from 18.1 million metric tonnes in 2013-14 to 145.5 million metric tonnes in 2024-25, recording nearly 700 percent growth.
The length of waterways in operation has increased from 2,716 km to more than 5,155 km, easing congestion on road and rail networks.
The government launched a Coastal Cargo Promotion Scheme to incentivize modal shift from rail and road to waterways, aiming to increase the share of inland waterways and coastal shipping from 6 percent to 12 percent by 2047.
New Dedicated Freight Corridors are being developed connecting Dankuni in the east to Surat in the west to improve port connectivity and cargo evacuation efficiency.
The government is promoting the indigenization of seaplane manufacturing, along with a Viability Gap Funding scheme to support operations, improving last-mile connectivity and promoting tourism.
The tax deduction period for units in GIFT IFSC and Offshore Banking Units has been extended from 10 to 20 consecutive years to promote Indian ship ownership.
The sunset clause for customs duty exemption on import of small vessels has been extended until March 2028.
This Concept in News
1 topicsFrequently Asked Questions
61. What's the most common MCQ trap related to the Sagarmala Project's funding?
The most common trap is misattributing the entire ₹16 lakh crore investment to the central government. While the government promotes and facilitates the project, the investment is expected to come from a mix of public and private sources, including state governments and private companies. An MCQ might suggest that the entire amount is solely a central government outlay, which is incorrect.
Exam Tip
Remember: ₹16 lakh crore is the *envisaged* investment from all sources, not just the central government's direct spending.
2. How does the Sagarmala Project differ from the Bharatmala Project, and why is this distinction important for the UPSC exam?
Sagarmala focuses on port-led development, utilizing India's coastline and waterways. It aims to modernize ports, enhance connectivity via coastal shipping and inland waterways, and promote port-based industries. Bharatmala, on the other hand, is focused on improving road infrastructure across the country, including border areas and remote regions. The distinction is crucial because UPSC often tests conceptual clarity by presenting scenarios where one project is mistakenly attributed with the objectives of the other. For example, a question might ask if Bharatmala aims to increase coastal shipping, which is incorrect.
Exam Tip
Remember: 'Sagar' (sea) for ports and waterways; 'Bharat' (India) for roads.
3. What are Coastal Economic Zones (CEZs) under Sagarmala, and what's a practical challenge in their implementation that UPSC might ask about?
Coastal Economic Zones (CEZs) are industrial clusters near ports intended to boost manufacturing and exports. A practical challenge is land acquisition and environmental clearances. Establishing these zones often requires acquiring land from multiple owners, leading to delays and disputes. Additionally, these zones may face opposition from environmental groups due to potential impacts on coastal ecosystems. UPSC could frame a question around the trade-off between economic development and environmental protection in the context of CEZs.
Exam Tip
Consider the 'Environment vs. Development' angle when CEZs are mentioned in a question.
4. Why has the target of increasing the share of coastal shipping and inland waterways to 12% by 2047 been difficult to achieve, and what are the main bottlenecks?
Several factors contribute to this difficulty. Firstly, the lack of adequate infrastructure for inland waterways, including dredging to maintain navigable depths, and limited terminal facilities. Secondly, coordination issues between different government agencies and states often cause delays in project approvals and implementation. Thirdly, the higher cost of logistics compared to road and rail transport in certain regions makes it less attractive for businesses. Finally, the lack of awareness and promotion of inland waterways as a viable transportation option among businesses hinders its adoption.
- •Inadequate inland waterway infrastructure (dredging, terminals)
- •Coordination issues between government agencies and states
- •Higher logistics costs compared to road/rail in some regions
- •Lack of awareness and promotion among businesses
5. Critics argue that Sagarmala focuses disproportionately on port modernization and industrialization, neglecting coastal community development. What evidence supports this argument, and how could this imbalance be addressed?
Evidence includes the relatively smaller allocation of funds and attention to Coastal Community Development compared to Port Modernization and Port-led Industrialization. For example, while significant investments are made in port infrastructure and CEZs, coastal communities often lack access to adequate healthcare, education, and skill development programs. This imbalance could be addressed by increasing investment in coastal community development initiatives, ensuring local participation in project planning and implementation, and prioritizing projects that directly benefit coastal communities, such as fisheries development and eco-tourism.
6. The National Waterways Act, 2016 declared 111 waterways as national waterways. However, many are still not operational. What are the key challenges in making these waterways viable for transportation, and how can these be overcome?
Key challenges include: insufficient depth due to siltation and lack of dredging, inadequate infrastructure like terminals and navigation aids, environmental concerns related to dredging and construction, and lack of private sector investment due to perceived risks and uncertainties. These can be overcome by: regular dredging to maintain navigable depths, investing in modern terminal facilities and navigation systems, conducting thorough environmental impact assessments and implementing mitigation measures, and providing incentives and guarantees to attract private investment.
- •Insufficient depth due to siltation
- •Inadequate infrastructure (terminals, navigation aids)
- •Environmental concerns related to dredging
- •Lack of private sector investment