Sagarmala Project Current Affairs

Government funds Ro Pax Ferry Service in Gulf of Cambay under Sagarmala Programme

The Union Ministry of Shipping has sanctioned the Capital Dredging Project of Ro Pax Ferry Services between Gogha & Dahej, in Gulf of Cambay in Gujarat under Sagarmala programme.

The total project cost is estimated to be Rs 234 Crore of which 50% will be funded by the Union Government under the Sagarmala programme.

Significance of Project

  • This is first of its kind project in India as it will be executed in the area of world’s 2nd highest tidal range.
  • This project on completion will result in reduction in motorable distance of 231 kms between Gogha and Dahej in Gujarat to mere 31 kms.
  • It will pave way for launching India’s first roll on-roll off (Ro-Ro) vessel passenger ferry services on this route by April 2017.
  • Besides, it will reduce the travel time to 1 hour from 7 hours. It will also result in savings in fuel, reduction in CO2 emission and reduction in road congestion.
  • The project will open up new avenues in coastal shipping & tourism and help in socio-economic development of proximate areas.
  • It will also help in utilisation of inland waterways through River Narmada for shipping goods from industries located upstream.

What is Sagarmala Programme?

  • The Sagarmala Programme is Union Government’s flagship strategic, customer-oriented initiative to achieve the broad objective of promoting port-led economic development in India.
  • The ambitious programme 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.
  • It envisages the growth of coastal and inland shipping as a major mode of transport for carriage of goods and people along the coastal and riverine economic centres.
  • Sagarmala when integrated with the development of inland waterways will help to reduce cost and time for transporting goods, benefiting industries and export/import trade.

Gulf of Cambay

The Gulf of Cambay (also known as Gulf of Khambhat) is an inlet of the Arabian Sea in the state of Gujarat along the west coast of India. It divides the Kathiawar peninsula to the west from the eastern part of Gujarat state. Narmada, Tapti, Mahi and Sabarmati rivers drain into it.

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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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