Union Cabinet Approves Incorporation of Sagarmala Development Company Under the Companies Act [ Current Affairs ]
Union Cabinet headed by Prime Minister Narendra Modi has approved the incorporation of Sagarmala Development Company (SDC). It objective is to give a push to port-led economic development under aspiring Sagarmala project. This company will be included under the Companies Act, 2013 and it’s an initial authorized share capital of 1, 000 crore rupees and a subscribed share capital of 90 Crore rupees.
- SDC: Sagarmala Development Company
- SDC will be under the managerial control of the Union Ministry of Shipping.
- It will provide funding support to the residual projects under the Sagarmala Programme.
- It will provide equity support to the project Special Purpose Vehicles (SPVs).
- By the private or PPP mode implementation of the identified projects will be taken up.
- It will mostly identify port-led development projects and support the project SPVs in project development and for the private sector participation structuring activities invitation out projects.
- Through multiple States and Regions it will put in place suitable risk management measures for strategic projects cutting and obtaining necessary approvals and clearances.
- Identified as part of the NPP (National Perspective Plan) it will undertake the preparation of the detailed master plans for the Coastal Economic Zones (CEZs).
- SDC will provide a complete framework for certifying the integrated development of Indian maritime sector.
- It will manage the coastal community development scheme and fund coastal community development projects. This project identified under the Sagarmala Programme.
- By Union Government and multi-lateral and bilateral funding agencies it will increase long term capital as per project necessities by leveraging resources provided.
About Sagarmala Project:
- This project is a strategic and customer-oriented initiative of the Government of India to improve India’s Ports.
- Union Government had launched Sagarmala Project.
- Its aims to achieve the broad objective of promoting port-led economic development in India.
- 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 main international maritime trade routes.
- NPP was prepared for the comprehensive development of the coastline and maritime sector.
NPP has identified more than 150 projects in the areas of Port Connectivity Improvement:
- Port-led Industrialization and Coastal Community Development
- Port Modernization & New Port Development
- Published on: July 22, 2016