New Delhi: The government today gave 'in principle' nod to Sagarmala project, which is aimed at port-led development in coastal states.
"The Union Cabinet chaired by Prime Minister Narendra Modi, today gave its 'in-principle' approval for the concept and institutional framework of Sagarmala Project," an official statement said.
Funds requirement for starting the implementation of projects in initial phase of Sagarmala Project is projected at Rs 692 crore for 2015-16, it said.
The prime objective of the 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 statement said.
The Prime Minister had earlier stressed the need for shifting focus from port development to 'port-led development' model to maximise gains.
The government said for a comprehensive and integrated planning for 'Sagarmala', a National Perspective Plan (NPP) for the entire coastline shall be prepared within six months which will identify potential geographical regions to be called Coastal Economic Zones (CEZs).
It said the project shall, inter alia, aim 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 government said the initiative will address challenges by focusing on three pillars of development - supporting and enabling Port-led Development through appropriate policy and institutional interventions, port infrastructure enhancement including modernisation and setting up of new ports, and efficient evacuation to and from hinterland.
"The Sagarmala Project therefore intends to achieve the broad objectives of enhancing the capacity of major and non-major ports and modernising them to ...Become drivers of port-led economic development, optimising the use of existing and future transport assets and developing new lines/linkages for transport, setting up of logistics hubs, and establishment of industries and manufacturing centres to be served by ports in EXIM and domestic trade."
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.