FOCUS ON INFRASTRUCTURE

Port infrastructure is being improved to support the growth in trade and promote coastal shipping. Highways across the length and breadth of the country will strengthen last-mile connectivity
New port in Sirkhazi, Tamil Nadu – Techno Economic Feasibility Report has been prepared.

India being the largest and fastest growing economy at the global level is expected to post a growth rate of 7.6 per cent in FY2018, rising to 7.8 per cent in FY 2019- 20. Domestic consumption and exports are on the rise and the growth in trade is being supported with a boost to logistics infrastructure.

As majority of trade moves through sea, the union government has initiated the Sagarmala Programme, under which 415 projects, at an estimated investment of approximately `8 lakh crore have been identified across port modernization and new port development, port connectivity enhancement, port-linked industrialization and coastal community development for phase wise implementation over the period 2015 to 2035. As per the approved implementation plan of Sagarmala Programme, these projects are to be taken up by the relevant central ministries/agencies and state governments preferably through private/PPP mode.

6 new port locations have been identified, namely – Vadhavan, Enayam, Sagar Island, Paradip Outer Harbour, Sirkazhi and Belekeri. The current status of each of the proposed new port locations is as follows:

  • New port in Sagar Island (West Bengal) – Approval obtained for setting up major port at Sagar Island. DPR prepared. Viability being re-examined in view of announcement of new port at Tajpur by State Govt. of West Bengal.
  • Paradip Outer Harbour in Odisha – DPR under preparation.
  • New port in Enayam, Tamil Nadu – In principle approval obtained for setting up major port at Enayam. DPR under preparation.
  • New port in Belikeri, Karnataka – Techno Economic Feasibility Report prepared.
  • New port in Vadhavan, Maharashtra – DPR under preparation.

Increasing the share of coastal shipping and inland navigation in the transport modal mix is one of the key objectives of the Sagarmala programme. In order to equip ports for movement of coastal cargo, the scope of coastal berth scheme has been expanded and merged with Sagarmala. Under the scheme, the financial assistance of 50 per cent of project cost is provided to major ports/ state governments for construction of coastal berths, breakwater, mechanization of coastal berths and capital dredging. `152 crore has been released for 16 projects under this scheme. In addition, Cabotage has been relaxed for a period of 5 years for specialized vessels like Ro-Ro, RO-PAX etc.

To augment transshipment capacity in the country, Vizhinjam (Kerala) and Enayam (Tamil Nadu) are being developed as transshipment ports. Vizhinjam is being developed as transhipment hub under PPP mode by Government of Kerala with viability gap funding from government of India. In principle approval has been obtained for setting up a major port at Enayam and its DPR is under preparation. To strengthen the last-mile connectivity the government has developed the Golden quadrilateral that includes the East-West and North-South corridors that connect to major ports.