Government to offer aid for Sagar Mala project

 The Rs 1,09,000 crore project is expected to infuse new life into the neglected sectors of the maritime industry - the inland waterways, coastal shipping and ship-building and repairs sectors.

 The development of the first two will vitalise ship-building and repair activities too, by creating demand for more vessels.

 According to shipping ministry sources, coastal shipping will be accorded infrastructure status and a Coastal Shipping Development Authority will be set up to provide soft loans.

 Sinha said the investments for the Sagar Mala project is estimated to exceed even the Rs 1 lakh crore and would rope in private public participation for the project.

 The prime minister had announced the Sagar Mala project on the Independence Day 2003 which focused on the capacity expansion and modernisation of ports along the west and east coasts of India.

 The project also envisages inter-port connectivity to augment coastal shipping to reduce transaction cost. Sinha was speaking at the first conference on