Coastal shipping of cargo to save 40k cr: Govt
As much as Rs 40,000 crore could be saved by promoting cargo transportation by enhancing coastal shipping in 10 years under the ambitious Sagarmala project, a port-led development scheme, as per government estimates.
New Delhi : As much as Rs 40,000 crore could be saved by promoting cargo transportation by enhancing coastal shipping in 10 years under the ambitious Sagarmala project, a port-led development scheme, as per government estimates. Sagarmala is an ambitious project to promote port-led direct and indirect development of coastal states and to provide infrastructure for transporting goods via ports quickly, efficiently and cost-effectively.
"Higher coastal shipment of coal by 100 million tonne per annum (MTPA) and higher coastal shipment of other commodities (cement, steel, fertiliser, food grains, POL) by 50 MTPA" alone could result in savings to the tune of Rs 11,500 crore by 2025, an official document on Sagarmala said.
Building of new coastal capacities for 120 MTPA steel and cement in southern Gujarat, Central Andhra Pradesh, northern Karnataka, Odisha and northern Andhra Pradesh would result in savings of another Rs 8,500 crore, it said.
According to the document, another Rs 12,500 crore could be saved in the next ten years by reducing time to export container by 5 days through customs efficiency and last mile connectivity by building dedicated road corridors.
Apart from these, the government plans saving Rs 7,500 crore by increasing "share of railways in modal mix from current 18 per cent to 25 per cent, creating "transshipment hub at Southern tip" and building "three new container ports" at Vadhavan, central Andhra Pradesh and Sagar.
Once implemented, this will result in cargo traffic increasing three-fold while the ports will also go under performance audit. Gadkari said the Prime Minister's emphasis is on "cooperative federalism" and Chief Ministers of states like Andhra Pradesh, Goa, Tamil Nadu, Karnataka, Maharashtra, Gujarat and Odisha, who attended the first meeting of Sagarmala had come out with many good proposals.
He has said 13 states and union territories were involved in Sagarmala initiative which will be implemented across India's 7,500 kms coastline. In March, the Cabinet had given 'in-principle' nod to the project, aimed at port-led development in coastal states.