Government to Complete Sagarmala Projects Worth USD76.38 billion by May 2019

India: Government of India is planning to implement projects worth USD76.38 billion by May 2019 under Sagarmala initiative. A total of around USD183.37 billion were being planned for investment under this scheme, out of which USD122.21 billion would be used to establish industrial clusters and USD61.16 billion will go to port rail and port road connectivity as well as port modernization. The government is expecting a profit of around USD1.05 billion from operation of 12 major ports and 3 flagship shipping organizations in 2017.

TechSci Research depicts that Implementation of Sagaramala initiative by Government of India present investment opportunities for ports and related infrastructural development which will boost maritime trade in India. Moreover, modernization and expansion of ports by private international companies is anticipated to fuel growth in marine transport sector in India. Port led industrialization is anticipated to provide immense scope for reduction in logistics costs. Rising number of Public Private Partnerships and 100% FDI under automatic route for development of ports is anticipated to encourage international companies to start operations in India in the ensuing years.

According to released report of TechSci Research “India Port Infrastructure Market By Type, By Cargo, Forecast & Opportunities, 2011 - 2025”, ports infrastructure market in India is projected to grow at a CAGR of over 9% during 2016-2025, on account of heavy infrastructure funding at ports and related infrastructures such as connecting roads, railways and Coastal Economic Zones. Additionally, National Perspective Plan of Government of India envisaged an investment of over USD10 billion for the next five years, aimed at development of ports.