Ministry of Shipping Current Affairs

Government to expand Logistics Data Bank project to South India  

The Union Ministry of Shipping is planning to expand Logistics Data Bank (LDB) project to the country’s southern region. So far, it had covered only the western logistics corridor.

The LDB project was launched at the Jawaharlal Nehru Port (JNPT), Mumbai in July 2016, making it first port in India to provide this service. Later its operations were expanded to the container terminals at Adani Port Special Economic Zone (APSEZ), Mundra and Adani Hazira Port — both in Gujarat.

About Logistics Data Bank (LDB) project

The LDB project was unveiled in July 2016 to make India’s logistics sector more efficient through the use of Information Technology. Under this project, every container in the port facility is attached to a Radio Frequency Identification Tag (RFID) tag and then tracked through RFID readers.

It is being implemented through a Special Purpose Vehicle (SPV) called Delhi Mumbai Industrial Corridor Development Corporation Logistics Data Services Ltd. (DLDSL). DLDSL is jointly (50:50) owned by the Delhi Mumbai Industrial Corridor (DMIC) Trust and Japanese IT services major NEC Corporation.

The LDB project covers the entire movement of containers through rail or road till the Inland Container Depot and Container Freight Station. Its service integrates information available with the agencies across the supply chain to provide detailed, real-time information within a single window.

Significance of project

It has helped to cut the overall lead time of container movement as well as reduced transaction costs that consignees and shippers incur. It also has aided importers and exporters in tracking their goods in transit. It is billed as a major ‘ease of doing business’ initiative aimed at boosting India’s foreign trade and ensuring greater transparency.

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Union Cabinet approves incorporation of Sagarmala Development Company

The Union Cabinet has approved the incorporation of Sagarmala Development Company (SDC) to give a push to port-led economic development under ambitious Sagarmala project.

SDC will be incorporated under the Companies Act, 2013, with an initial authorized share capital of 1,000 crore rupees and a subscribed share capital of 90 Crore rupees.

About Sagarmala Development Company (SDC)

  • SDC will be under the administrative control of the Union Ministry of Shipping.
  • It will provide equity support to the project Special Purpose Vehicles (SPVs) and funding support to the residual projects under the Sagarmala Programme.
  • Implementation of the identified projects will be taken up mainly through private or PPP mode. It will also provide equity support for the project Special Purpose Vehicles (SPVs).
  • SDC will mainly identify port-led development projects and assist the project SPVs in project development and structuring activities, bidding out projects for private sector participation.
  • It will also put in place suitable risk management measures for strategic projects cutting across multiple States and Regions and obtaining requisite approvals and clearances.
  • SDC will also undertake the preparation of the detailed master plans for the Coastal Economic Zones (CEZs) identified as part of the NPP (National Perspective Plan).
  • SDC will provide a holistic framework for ensuring the integrated development of Indian maritime sector.
  • It will also manage the coastal community development scheme and fund coastal community development projects identified under the Sagarmala Programme.
  • SDC will raise long term capital as per project requirements by leveraging resources provided by Union Government and also from multi-lateral and bilateral funding agencies.

About Sagarmala Project

  • Union Government had launched Sagarmala Project with a view to achieve the broad objective of promoting port-led economic development in India.
  • The ambitious Project seeks to harness vast potential of India’s 7,500 km long coastline, 14,500 km of potentially navigable waterways, and strategic location on key international maritime trade routes.
  • As part of it, a NPP for the comprehensive development of the coastline and maritime sector was prepared.
  • The NPP has identified more than 150 projects across the areas Port Connectivity Enhancement, of Port Modernization & New Port Development, Port-led Industrialization and Coastal Community Development.

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