Non-Major Ports can now access Sagarmala funds

Posted by Daily Shipping Times on 12-06-2017        Tweet

NEW DELHI: Non-Major Ports can access funds from the Sagarmala Development Company Ltd (SDCL) for connectivity links subject to certain conditions.

If the concession agreement with the State says that providing connectivity is not the responsibility of the private concessionaire, then SDCL will take up the project, a Government official said.

Non-major ports are under the aegis of State governments that already handling two-three million tonne of cargo but are hampered by hinterland connectivity.

SDCL was formed with an aim to structure projects with revenue streams and is in talks with Vizhinjam Port, Kerala, for connectivity.

Under the Sagarmala scheme, which aims of port-led development, projects worth Rs.1.37 lakh crore are already under implementation. These include projects under public-private partnership mode, port connectivity and rail connectivity.

“We have sanctioned over Rs.2,000 crore worth of projects, of which Rs.400 crore has been released,” said RK Agarwal, JS-Sagarmala, Shipping Ministry, said at the workshop. At the event, various funding guidelines were also discussed for the Sagarmala programme (from the budget of Shipping Ministry) which, in any project, will be limited to 50 per cent of the project cost as per the detailed project report or the cost of tender, whichever is lower.

Funding schemes are also available for coastal berths, mechanisation, dredging and jetties. They are broadly classified as 50 per cent of project cost or Rs.25-10 crore. Some 17 berths for coastal shipping have been sanctioned under the scheme.

Then there are three coastal economic zone (CEZ) projects under consideration of the inter-ministerial committee. There are three proposals under consideration – one each from Andhra Pradesh, Gujarat and Odisha.