Union Cabinet approves incorporation of Sagarmala Development Company
The Union Cabinet has approved the incorporation of Sagarmala Development Company (SDC) to give a push to port-led economic development under ambitious Sagarmala project.
SDC will be incorporated under the Companies Act, 2013, with an initial authorized share capital of 1,000 crore rupees and a subscribed share capital of 90 Crore rupees.
About Sagarmala Development Company (SDC)
- SDC will be under the administrative control of the Union Ministry of Shipping.
- It will provide equity support to the project Special Purpose Vehicles (SPVs) and funding support to the residual projects under the Sagarmala Programme.
- Implementation of the identified projects will be taken up mainly through private or PPP mode. It will also provide equity support for the project Special Purpose Vehicles (SPVs).
- SDC will mainly identify port-led development projects and assist the project SPVs in project development and structuring activities, bidding out projects for private sector participation.
- It will also put in place suitable risk management measures for strategic projects cutting across multiple States and Regions and obtaining requisite approvals and clearances.
- SDC will also undertake the preparation of the detailed master plans for the Coastal Economic Zones (CEZs) identified as part of the NPP (National Perspective Plan).
- SDC will provide a holistic framework for ensuring the integrated development of Indian maritime sector.
- It will also manage the coastal community development scheme and fund coastal community development projects identified under the Sagarmala Programme.
- SDC will raise long term capital as per project requirements by leveraging resources provided by Union Government and also from multi-lateral and bilateral funding agencies.
About Sagarmala Project
- Union Government had launched Sagarmala Project with a view to achieve the broad objective of promoting port-led economic development in India.
- The ambitious Project seeks to harness vast potential of India’s 7,500 km long coastline, 14,500 km of potentially navigable waterways, and strategic location on key international maritime trade routes.
- As part of it, a NPP for the comprehensive development of the coastline and maritime sector was prepared.
- The NPP has identified more than 150 projects across the areas Port Connectivity Enhancement, of Port Modernization & New Port Development, Port-led Industrialization and Coastal Community Development.
Month: Current Affairs - July, 2016