eGovWatch: Sagarmala to have 12 smart cities: Nitin Gadkari

At least 12 smart cities and several coastal economic zones will come up under the ambitious Sagarmala project, lifting India’s GDP growth by 2 per cent, Union Minister Nitin Gadkari today said.

“Sagarmala project which is a priority project for Prime Minister Narendra Modi has been designed in a fashion that it will see at least 12 smart cities at India’s major ports besides special economic zones (SEZs),” Road Transport, Highways and Shipping Minister Gadkari told reporters here.

Cabinet yesterday gave ‘in-principle’ nod to the project, aimed at port-led development in coastal states.

Terming the decision as “revolutionary and historical” Gadkari said: “This project alone will boost India’s GDP by 2 per cent. An allocation of Rs 4,000 crore has been made for SEZ at Jawaharlal Nehru Port Trust, which is one of 12 major ports in India, under the Sagarmala project, while coastal economic zone is in the offing at Kandla port which has two lakh acres of land in its possession.”

Besides smart cities, which will have affordable housing, wind & solar power and green industry, 1,208 islands have been identified for development to attract tourists, he said, adding that 189 light houses are also part of the project.

As a step towards comprehensive and integrated planning for ‘Sagarmala’, Gadkari said a National Perspective Plan (NPP) for the entire coastline will be prepared within six months which will identify potential geographical regions to be called Coastal Economic Zones (CEZs).

He said the initiative will address challenges by focusing on three pillars of development – supporting and enabling Port-led development through appropriate policy and institutional intervention; port infrastructure enhancement including modernisation and setting up of new ports; and efficient evacuation to and from hinterland.

Besides enhancing port capacity, the project will boost export-import as well as domestic trade.

“At present Indian ports handle more than 90 per cent of India’s total EXIM trade volume but the current proportion of merchandise trade in GDP is only 42 per cent whereas in Germany and European Union, it is 75 per cent and 70 per cent respectively,” he said.

Earlier, Gadkari had said that each of the 12 smart cities will be built at a cost of Rs 50,000 crore.

Funds required in 2015-16 for implementation of projects in the initial phase of Sagarmala is pegged at Rs 692 crore.

The prime objective of the Sagarmala project is to promote port-led direct and indirect development and to provide infrastructure to transport goods to and from ports quickly, efficiently and cost-effectively.

The Prime Minister had earlier stressed on the need for shifting focus from port development to ‘port-led development’ model to maximise gains.

Gadkari said that in addition to strengthening port and evacuation infrastructure, Sagarmala project aims at simplifying procedures used at ports for cargo movement and promotes usage of electronic channels for information exchange leading to efficient, hassle-free and seamless cargo movement.

While preparing the NPP, synergy and integration with planned industrial corridors, dedicated freight corridors, National Highway Development Programme, Industrial Clusters and SEZs would be ensured, he said.

“Detailed Master Plans will be prepared for identified Coastal Economic Zones leading to identification of projects and preparation of their detailed project reports,” he added.

In order to have effective mechanism at the state level for coordinating and facilitating related projects, the state governments will be asked to set up State Sagarmala Committee to be headed by Chief Minister/Minister in Charge of Ports, alongwith members from relevant Departments and agencies.

The government yesterday said a Sagarmala Coordination and Steering Committee (SCSC) shall be constituted under the chairmanship of the Cabinet Secretary with Secretaries of the Ministries of Shipping, Road Transport and Highways, Tourism, Defence, Home Affairs, Environment, Forest & Climate Change, Departments of Revenue, Expenditure, Industrial Policy and Promotion, Chairman, Railway Board and CEO, NITI Aayog as members.

The Committee will also examine financing options available for the funding of projects, the possibility of public-private partnership in project financing/construction/ operation.

Government also said a National Sagarmala Apex Committee (NSAC) is envisaged for overall policy guidance and high level coordination for the project which will be chaired by Shipping Minister Nitin Gadkari.

This committee, while providing policy direction and guidance for the initiative’s implementation, will approve the overall NPP and review the progress of implementation of these plans.