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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Categories: India Current Affairs 2017

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