Ministry of Ports, Shipping and Waterways

Central Economic Zone Under Sagarmala Scheme

Posted On: 15 MAR 2022 3:11PM by PIB Delhi

Under the National Perspective Plan of the Sagarmala Programme, fourteen Coastal Economic Zones (CEZ) were envisaged including three in the state of Tamil Nadu. Subsequently, it was proposed to create an institutional framework and develop one CEZ project on a pilot basis for enabling Port Led Industrialization and incentivize employment generation. The proposal was taken up with the Department of Expenditure which recommended that Ministry of Ports, Shipping and Waterways should explore possibility of development of a CEZ with land available with the Major Ports duly taking into consideration other initiatives of Government of India.

National Industrial Corridor Development and Implementation Trust (NICDIT) under the administrative control of Department for Promotion of Industry and Internal trade(DPIIT) in partnership with respective State Govt(s) has planned to develop various industrial corridor projects as part of National Industrial Corridor Programme which is aimed at development of green field industrial region/nodes in India. Government of India has accorded approval for development of 11 corridors (32 projects) in FourPhases as part of National Master Plan for providing multimodal connectivity to economic zones which are under various stages of conceptualization/development/implementation.

Accordingly, Ministry has entrusted Sagarmala Development Company Limited for conducting   a detailed study to suitably modify National Perspective Plan for CEZ keeping in view other initiatives of Government of India such as National Industrial Corridor Programme, Bharatmala Connectivity Program and Dedicated Freight Corridors for achieving synergy and avoid duplication.

Also, more than 8000 Acres of land have been used for Industrialization by Major Ports which has generated more than 2 Lakh direct and indirect employment.

While identifying locations to set up a Satellite Port, Chennai Port Trust (ChPT) ascertained that Neyveli Lignite Corporation (NLC) had a proposal for setting up Thermal Power Station at Sirkazhi and evinced interest in utilizing the expertise of ChPT for developing the Port. NLC provided details of their Sirkali thermal power project including land available, timelines, requirements of coal volume and setting up a Port.  The Draft MoU for Development of Satellite Port near Sirkazhi was prepared and sent to NLC for signing during the Maritime India Summit in 2016.  However, NLC has informed that as the project is yet to be sanctioned, the development of Satellite Port may be premature.

  Subsequently, NLC India Limited informed about establishment of Power Plant in Odisha and dropping of development of Sirkali Thermal Power Project thereby adversely affecting cargo projections at Sirkazhi Port and hence its implementation.

Ministry accorded in principle approval for development of New Major Port at Enayam in July 2016. However, field studies could not be carried out due to resistance from fishermen groups and local public. As the agitation continued, the alternative sites were analysed at Colachel, Manavalkuruchi and Kanyakumari. A habitation free sea shore stretch at Kanyakumari was identified as feasible location. The DPR prepared for new port at Kanyakumari was further revised to encourage maximum participation of private sector. Expression of Interest (EOI) was invited on 20 February 2021 for developing of Transhipment hub near Kanyakumari on Public Private Partnership mode. However, in view of development of V. O. Chidambaranar Port as Transhipment hub, Ministry advised to cancel the EoI.

This information was given by the Union Minister for Ports, Shipping and Waterways, Shri Sarbananda Sonowal in a written reply to the Rajya Sabha.




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