Union Cabinet Approves Incorporation of Sagarmala Development Company Under the Companies Act


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.

Image of Prime Minister Narendra Modi

Image of Prime Minister Narendra Modi

Showing image of Prime Minister Narendra Modi

About SDC

  • 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/Last Modified on: July 22, 2016