Incorporation of Sagarmala Development Company
As part of the efforts to promote port-led development in the
country, the Sagarmala Development Company (SDC) has been incorporated under
the Companies Act, 2013.
Key facts:
§ SDC will be under the administrative
control of the Ministry of Shipping.
§ It will have an initial Authorized Share Capital of Rs. 1,000
Crore and a Subscribed Share Capital of Rs. 90 Crore.
§ SDC will Identify port-led development projects and assist the
project SPVs in project development and structuring activities, bidding out
projects for private sector participation, putting in place suitable risk
management measures for strategic projects cutting across multiple States /
Regions and obtaining requisite approvals and clearances.
§ Since the Identified projects will be undertaken by multiple
agencies, SDC will also work as
the nodal agency for coordination and monitoring of all the
currently identified projects as well as other projects emerging from the
master plans or other sources.
§ SDC will undertake the preparation of the detailed master plans
for the Coastal Economic Zones (CEZs) identified as part of the NPP and provide
a framework for ensuring the integrated development of Indian maritime sector.
§ Other important role assigned to SDC is to manage the coastal
community development scheme and fund coastal community development projects
identified under the Sagarmala Programme. The projects considered would be
specific time-bound local interventions and innovative in nature.
§ It will also be raising funds as debt/equity (as long term
capital), as per the project requirements/ by leveraging resources provided by
the Government of India and from multi-lateral and bilateral funding agencies.
SDC will also aim to increase the scope of private sector participation in
project development.
Background:
The Cabinet in July had approved the formation of the SDC. The
incorporation of SDC is part of the ambitious Sagarmala Programme by the
Government of India. The concept of the Sagarmala Programme was approved by the
Cabinet in March 2015.
Sagarmala Initiative:
The Sagarmala project seeks to develop a string of ports around
India’s coast. The objective of this initiative is to promote “Port-led
development” along India’s 7500 km long coastline.
§ It aims to develop access to new development regions with
intermodal solutions and promotion of the optimum modal split, enhanced
connectivity with main economic centres and beyond through expansion of rail,
inland water, coastal and road services.
§ The Union Ministry of
Shipping has been appointed as the nodal ministry for this initiative.
The Sagarmala initiative will address challenges by focusing on
three pillars of development, namely:
§ Supporting and enabling Port-led Development through appropriate
policy and institutional interventions and providing for an institutional
framework for ensuring inter-agency and ministries/departments/states’
collaboration for integrated development.
§ Port Infrastructure Enhancement, including modernization and setting
up of new ports.
§ Efficient Evacuation to and from hinterland.
Other objectives:
§ In addition to strengthening port and evacuation infrastructure,
it also aims at simplifying procedures used at ports for cargo movement and
promotes usage of electronic channels for information exchange leading to
quick, efficient, hassle-free and seamless cargo movement.
§ It also strives to ensure sustainable development of the
population living in the Coastal Economic Zone (CEZ). This would be done by
synergising and coordinating with State Governments and line Ministries of
Central Government through their existing schemes and programmes such as those
related to community and rural development, tribal development and employment
generation, fisheries, skill development, tourism promotion etc.
