Model Answer
0 min readIntroduction
India, with its vast 7,500 km coastline and extensive network of navigable waterways, possesses immense potential for port-led economic development. Recognizing this, the Government of India launched the Sagarmala Programme in March 2015 as a flagship initiative under the Ministry of Ports, Shipping, and Waterways. The project aims to revolutionize India's maritime sector by enhancing port infrastructure, streamlining logistics, reducing costs, and boosting international trade competitiveness. It seeks to shift the traditional infrastructure-heavy transport model towards efficient coastal and waterway networks, thereby fostering industrial growth, job creation, and sustainable coastal development, and positioning India as a global maritime leader as envisioned in the Maritime Amrit Kaal Vision 2047.
Understanding the Sagarmala Project
The Sagarmala Programme is a national initiative designed to unlock the potential of India's coastline and waterways, driving port-led development. Its vision is to reduce logistics costs for both domestic and EXIM (Export-Import) cargo by optimizing infrastructure investment and creating a seamless, cost-effective, and integrated national logistics network.
Key Pillars and Objectives
The Sagarmala project is structured around five strategic pillars, aiming to address the historical underutilization of India's maritime advantages:
- Port Modernization and New Port Development: Upgrading existing ports and establishing new world-class facilities to enhance capacity and efficiency. This includes mechanization and computerization of port operations.
- Port Connectivity Enhancement: Improving the evacuation of cargo from ports to the hinterland through multi-modal logistics solutions, including road, rail, and inland waterways. This aims to reduce transit times and costs.
- Port-led Industrialization: Promoting industrial clusters and Coastal Economic Zones (CEZs) near ports to reduce logistics costs for industries and boost export competitiveness.
- Coastal Community Development: Fostering sustainable development of coastal communities through skill development, tourism, and fisheries, ensuring inclusive growth.
- Coastal Shipping and Inland Waterways Transport: Promoting a modal shift towards more economical and environmentally friendly coastal shipping and inland waterways for cargo movement.
Achievements and Benefits of Sagarmala
The Sagarmala project has made significant strides in transforming India's maritime landscape, contributing to economic growth and improving the efficiency of the transport network.
- Increased Port Efficiency and Capacity: Modernization efforts have improved port turnaround times and handling capacity. As of March 2025, 272 projects worth approximately ₹1.41 lakh crores have been completed. The program envisions expanding port capacity from ~2,700 million tonnes per annum (MTPA) to over 10,000 MTPA by 2047.
- Logistics Cost Reduction: By promoting coastal shipping and inland waterways, the project aims to reduce India's logistics costs, which are currently high (around 13-14% of GDP). Coastal shipping has witnessed a 118% growth over the last decade, and inland waterway cargo movement surged by 700%.
- Enhanced Connectivity: The focus on multi-modal connectivity has strengthened links between ports and industrial hinterlands. Road and rail connectivity improvements to key ports have reduced congestion and enhanced trade efficiency.
- Job Creation: The project is expected to generate significant employment opportunities, both direct (construction, port operations) and indirect (warehousing, logistics, tourism, fisheries), with estimates of over 1 crore new jobs.
- Promotion of Coastal Economic Zones (CEZs): The development of CEZs aligns with the 'Make in India' initiative, attracting investments and boosting manufacturing and exports from coastal regions. These zones have the potential to boost exports by $110 billion and generate 40 lakh direct and 60 lakh indirect jobs.
- Global Recognition: Nine Indian ports now rank among the world's top 100, with Vizag in the top 20 container ports, demonstrating improved global logistics rankings.
Critical Discussion and Challenges
Despite its ambitious goals and notable achievements, the Sagarmala project faces several challenges that warrant critical examination:
1. Implementation Delays and Cost Escalations
- Many projects under Sagarmala have experienced delays in implementation. As of December 2025, while 124 projects have been sanctioned for funding under the Sagarmala scheme, only 78 projects have been completed, with over 40 still under implementation.
- A Standing Committee on Transport, Tourism and Culture report in March 2022 highlighted that port modernization projects under Sagarmala had seen a cost escalation of Rs 20,000 crore.
- Issues like land acquisition delays and the involvement of multiple agencies often lead to project bottlenecks and increased costs.
2. Underutilization of Potential
- Despite capacity enhancements, the utilization of major ports remains suboptimal. In 2020-21, out of a total capacity of 2,500 million tonnes, only 1,248 million tonnes of cargo were moved.
- The average turnaround time of ships at major Indian ports (56 hours in 2020-21) is significantly higher than the international standard of less than 24 hours.
3. Funding and Investment Mobilization
- The project relies heavily on private investment, institutional funding, and government support. An ICRA study pointed out that the program is impeded by a lack of timely investment mobilization and insufficient budgetary support.
- For instance, the Union Budget 2020-21 allocated only Rs. 297 crore for Sagarmala, a considerable reduction from Rs. 550 crore in 2019, despite an estimated investment requirement of Rs. 4 lakh crore for larger projects.
4. Environmental and Social Concerns
- There has been resistance from fishing communities and environmental activists in certain coastal areas, raising concerns about displacement, loss of livelihood, and ecological impact.
- Development activities, if not managed sustainably, can threaten fragile coastal ecosystems.
5. Inter-Agency Coordination
- The involvement of various central ministries, state governments, and implementing agencies (IWAI, Indian Railways, NHAI, Major Ports) necessitates robust coordination, which can sometimes be a challenge, leading to policy ambiguities.
Synergy with Other Initiatives
The Sagarmala project is strategically aligned with other key government initiatives, enhancing its overall impact:
| Initiative | Synergy with Sagarmala |
|---|---|
| PM Gati Shakti National Master Plan | Integrates multi-modal connectivity, ensuring seamless movement of goods and people across different transport modes, optimizing logistics efficiency. |
| Make in India | Provides robust port infrastructure and reduced logistics costs, making Indian manufacturing competitive globally and supporting port-led industrialization. |
| Bharatmala Pariyojana | Complements road connectivity to ports, improving last-mile connectivity and overall hinterland access, creating a comprehensive transport network. |
| Blue Economy Framework | Promotes sustainable utilization of marine resources, skill development in coastal communities, and maritime tourism. |
Conclusion
The Sagarmala project represents a crucial and transformative initiative for India's transport and communication network, aiming to unlock the nation's vast maritime potential. While it has demonstrated significant achievements in port modernization, enhancing connectivity, and contributing to economic growth through reduced logistics costs and increased trade, challenges persist in terms of implementation delays, funding gaps, and balancing development with environmental and social concerns. For the project to realize its full potential and contribute effectively to India's vision of becoming a global maritime leader by 2047, a more robust, coordinated, and sustainable approach is essential, emphasizing efficient execution, greater private sector participation, and inclusive development that addresses the needs of coastal communities.
Answer Length
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