The Sagarmala project, which seeks to develop a string of ports around India’s coast, is likely to get a Cabinet nod within this month.
The previous National Democratic Alliance government under Atal Behari Vajpayee (1998-2004) had initiated the ambitious project. The current NDA government under Narendra Modi has revived it.
Under the new project, a central Sagarmala Development Company (SDC) is to be formed under the Companies Act. Its major role will be to provide equity for the formation of Special Purpose Vehicles (SPVs) at the state or port level. Operational autonomy for implementation of port projects will rest with states and the port-formed SPVs.
“We have received comments from all the ministries we had approached, except finance. We are hopeful of getting an ‘in principle’ approval from the Cabinet by the end of this month,” said a high-ranking Union shipping ministry official, requesting anonymity.
According to documents reviewed by Business Standard, the institutional structure to be put in place to implement the vision will be multi-layered and complex.
At the top will be the National Sagarmala Apex Committee (NSAC), which will oversee and review the implementation. An Empowered Committee (EC), just below NSAC in the organisational hierarchy, will oversee the working of SDC. The SDC, as explained above, will oversee port and state-led SPVs for implementing projects, by working with state maritime boards and ports. There are overlapping stakeholders at multiple levels, with representatives from the ministries of shipping, tourism, defence, railways, road, transport & highways, and environment.
Each involved ministry and department is supposed to work out issues and coordinate across levels.
After an ‘in principle’ approval from the Cabinet Committee on Economic Affairs, the SDC will be set up, with an allocated budgetary support. “Participation of private equity in the SPVs will be encouraged wherever possible,” said another shipping ministry official.
The project aims at port capacity expansion, modernisation of those along the coast and developing coastal shipping and inland waterways.
