Sagarmala

What is Sagarmala?

Sagarmala is one of India’s flagship programmes for port-led development.
Its core purpose is to reduce logistics cost for both international trade (EXIM – Export-Import) and domestic trade, but with minimal investment in new infrastructure. Instead of building everything from scratch, it focuses on efficiently using existing ports, waterways, and coastal infrastructure.

It is a Central Sector Scheme, meaning it is fully funded and managed by the Union Government. Funding happens in two ways:

• Equity support through Special Purpose Vehicles (SPVs)
• Direct budgetary support

Projects under Sagarmala are implemented either by the private sector or through Public-Private Partnership (PPP) mode, ensuring efficiency and investment sharing.

Objectives

The vision of Sagarmala is simple yet ambitious:
👉 To accelerate India’s economic development by tapping into the 7,500 km long coastline and 14,500 km of navigable waterways.
India has a unique advantage of being a peninsular country, but historically, we underutilized our maritime potential. Sagarmala seeks to change that.

Salient Features

(i) Background

• Launched in 2016, Sagarmala aligns with the National Perspective Plan (NPP) for the holistic development of the Indian coastline.
• This ensures not just port development, but also industrial, community, and connectivity improvements.

(ii) Sagarmala Development Company Limited (SDCL)

• Set up under the Companies Act, 2013.
• Acts as the central vehicle to assist state-level and zone-level SPVs.
• In simple terms: SDCL gives both financial and technical handholding to states to implement Sagarmala projects.

(iii) Institutional Framework

There are two important committees here:

1. National Sagarmala Apex Committee (NSAC)
   • Headed by: Union Minister of Shipping
   • Members: Cabinet Ministers, Chief Ministers/Ministers of maritime states
   • Role: Provides overall policy guidance, approves the National Perspective Plan, ensures coordination, and reviews implementation.
2. State Sagarmala Committee
   • Headed by: Chief Minister/Minister in charge of Ports
   • Members: Relevant departments/agencies
   • Role: Acts as the nodal authority at the state level, prioritizes projects, and ensures coordination as per NSAC directions.

This layered framework ensures top-down vision with bottom-up implementation.

(iv) Landlord Model of Development

Sagarmala follows a landlord port model.

• Port authority: Owns land and regulates activities.
• Private companies: Operate terminals, handle cargo, and manage services.
  This model ensures efficiency of private operations with public ownership of critical assets.

(v) Sagarmala Young Professional (SYP) Scheme

• Unique feature: Involves youth in governance.
• About 25 young professionals are hired for 2 years (extendable to 2 more years).
• They bring in expertise in infrastructure, data analytics, and project management to strengthen the Ministry’s capacity.
  This reflects the programme’s forward-looking and inclusive approach.

Five Pillars of Sagarmala

The projects under Sagarmala are divided into five broad pillars:

1. Port-led Industrialization → Creating clusters, SEZs, thermal power plants, and port-based industries.
2. Coastal Community Development → Skill development, fisheries, ropeways, technology centres, and welfare of coastal communities.
3. Coastal Shipping & Inland Water Transport (IWT) → Coastal and cruise tourism, passenger jetties, island development, inland waterways.
4. Port Modernization → Building new ports, modernizing major and non-major ports, and ship repair facilities.
5. Port Connectivity → Strengthening connectivity through road, rail, pipelines, and multimodal hubs.

This five-pillar structure ensures that Sagarmala is not just about ports, but about creating an entire economic ecosystem around ports.

✅ In summary: Sagarmala is India’s ambitious plan to transform its maritime sector into a growth engine by reducing logistics costs, modernizing ports, boosting industry, developing coastal communities, and improving connectivity — all with minimal new investment but maximum efficiency.