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Parliamentary panel flags cost escalation in Sagarmala projects, calls for speedy implementation

The project intends to enhance the capacity of major and non-major ports, modernise them, strengthen port connectivity and evacuation infrastructure, simplify procedures adopted in ports, promote usage of electronic channels for information exchange leading to hassle-free and seamless cargo movement.

Asserting that the cost under the pillar 'Port Modernisation' has shot up by Rs 20,000 crore, a parliamentary panel has underlined the need for speedy implementation of the projects under the 'Sagarmala Programme' and reiterated that the government may enumerate the precise reasons for delays and steps being taken to address it
Parliamentary panel flags cost escalation in Sagarmala projects, calls for speedy implementation
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Published : Mar 28, 2022, 7:24 PM IST

New Delhi: Asserting that the cost under the pillar 'Port Modernisation' has shot up by Rs 20,000 crore, a parliamentary panel has underlined the need for speedy implementation of the projects under the 'Sagarmala Programme' and reiterated that the government may enumerate the precise reasons for delays and steps being taken to address it. The vision of Sagarmala is to reduce logistics cost for both domestic and EXIM cargo by building synergies between various agencies of the government and improve multimodal connectivity and linkages with minimal infrastructure investment.

The project intends to enhance the capacity of major and non-major ports, modernise them, strengthen port connectivity and evacuation infrastructure, simplify procedures adopted in ports, promote usage of electronic channels for information exchange leading to hassle-free and seamless cargo movement. "The Committee also notes that the cost under the pillar 'Port Modernization' has escalated by Rs 20,000 crores from Rs 2,59,817 crores to Rs 2,61,052 crore. "The committee underlines the need for speedy implementation of the projects under the Sagarmala Programme and reiterates its earlier recommendation that the Ministry may enumerate the precise reasons for delays, port-wise and steps being taken to address the delays," the Parliamentary Standing Committee on Transport, Tourism and Culture said in a report tabled in Parliament.

The Committee said that it is concerned to note that in the last interaction on this subject in 2020-2021, the government had informed that 76 of the 242 projects under ports modernisation had been completed resulting in port capacity addition for more than 200 MTPA and 59 were under implementation. However, nearly a year afterwards, only one more additional project has been completed leading to a total of 77 completed projects while 36 projects at major ports and 15 projects at non-major ports are under implementation. No new projects appear to have been implemented, it said adding that no progress appears to have been made on the Vadhavan Port which as an 'all weather all cargo' port would have considerable economic benefits to the nation.

Also read: India's blue economy an ocean of opportunities

It is disappointed to note that though the concept of Sagarmala programme was approved in 2015, and nearly eight years later only half of the projects for ship repairs are under implementation stage and not even one has been completed and suggested that a dedicated mechanism should be put in place for effective coordination and monitoring of PPP projects in the Sagarmala programme. The panel further recommended that a dedicated mechanism should be put in place for effective coordination and monitoring of PPP projects in the Sagarmala Programme.

The Committee cautioned the government that through its study tours and meetings with various agencies involved in the Sagarmala programme, it was apparent that there was a lack of coordination among the different Departments and that the Shipping Ministry did not have the full information about the status of work being done by all agencies. This has led to a situation though individual agencies were carrying out their work, there was no interlinking and coordination of the work done by all stakeholders. "The Committee therefore recommends that a coordination mechanism may be created involving all the stakeholders/ implementation agencies to monitor the work in a weekly basis to ensure that targets are achieved, aims and objectives are implemented, and time and cost overruns are avoided," it said.

PTI

New Delhi: Asserting that the cost under the pillar 'Port Modernisation' has shot up by Rs 20,000 crore, a parliamentary panel has underlined the need for speedy implementation of the projects under the 'Sagarmala Programme' and reiterated that the government may enumerate the precise reasons for delays and steps being taken to address it. The vision of Sagarmala is to reduce logistics cost for both domestic and EXIM cargo by building synergies between various agencies of the government and improve multimodal connectivity and linkages with minimal infrastructure investment.

The project intends to enhance the capacity of major and non-major ports, modernise them, strengthen port connectivity and evacuation infrastructure, simplify procedures adopted in ports, promote usage of electronic channels for information exchange leading to hassle-free and seamless cargo movement. "The Committee also notes that the cost under the pillar 'Port Modernization' has escalated by Rs 20,000 crores from Rs 2,59,817 crores to Rs 2,61,052 crore. "The committee underlines the need for speedy implementation of the projects under the Sagarmala Programme and reiterates its earlier recommendation that the Ministry may enumerate the precise reasons for delays, port-wise and steps being taken to address the delays," the Parliamentary Standing Committee on Transport, Tourism and Culture said in a report tabled in Parliament.

The Committee said that it is concerned to note that in the last interaction on this subject in 2020-2021, the government had informed that 76 of the 242 projects under ports modernisation had been completed resulting in port capacity addition for more than 200 MTPA and 59 were under implementation. However, nearly a year afterwards, only one more additional project has been completed leading to a total of 77 completed projects while 36 projects at major ports and 15 projects at non-major ports are under implementation. No new projects appear to have been implemented, it said adding that no progress appears to have been made on the Vadhavan Port which as an 'all weather all cargo' port would have considerable economic benefits to the nation.

Also read: India's blue economy an ocean of opportunities

It is disappointed to note that though the concept of Sagarmala programme was approved in 2015, and nearly eight years later only half of the projects for ship repairs are under implementation stage and not even one has been completed and suggested that a dedicated mechanism should be put in place for effective coordination and monitoring of PPP projects in the Sagarmala programme. The panel further recommended that a dedicated mechanism should be put in place for effective coordination and monitoring of PPP projects in the Sagarmala Programme.

The Committee cautioned the government that through its study tours and meetings with various agencies involved in the Sagarmala programme, it was apparent that there was a lack of coordination among the different Departments and that the Shipping Ministry did not have the full information about the status of work being done by all agencies. This has led to a situation though individual agencies were carrying out their work, there was no interlinking and coordination of the work done by all stakeholders. "The Committee therefore recommends that a coordination mechanism may be created involving all the stakeholders/ implementation agencies to monitor the work in a weekly basis to ensure that targets are achieved, aims and objectives are implemented, and time and cost overruns are avoided," it said.

PTI

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