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Sagarmala’s Coastal Economic Zone helps to Boost Port Activities

Development of ports in future is a step in the direction of the reduction of logistics in which the concept of Coastal Economic Zones introduces , which could be space relating in economic regions comprising of a group of coastal districts or districts with a strong linkage to the ports in that region. CEZs are also wants to tap synergies with the planned industrial corridor projects in future.
Sagarmala’s National Perspective Plan already identified two maritime clusters for development, one in Tamil Nadu and other in Gujarat. Fourteen Coastal Economic Zones (CEZ) also identified along the coastline of the country in the National Perspective Plan of the Sagarmala Program. China, Korea and Japan dominates shipping business worldwide which around for 90 per cent of the world’s shipbuilding capacity. In June 2015, the state government announced plans to facilitate growth in the manufacturing sector with a yearly capex increase of 15 per cent until 2020.
From two mail clusters, the second-longest coastline in India is Tamil Nadu which is around 1,076 km and is an important center for sea trade. Chennai, the state capital, is also an important port, making it a strategic point for trade. Tamil Nadu is one of the most developed states in India. The GDP of Tamil Nadu was around USD 85 bn in 2015–16 at 2004–05 constant prices, Tamil Nadu’s shipped total USD 27.9 bn in 2014–15 and grew at a CAGR of 4.7 per cent between 2007–08 and 2014–15. Tamil Nadu’s main aim is to achieve a consistent economic growth rate of 11 per cent per annum in a highly inclusive manner.
Gujarat has 42 ports, a major port at Kandla and 41 minor ports, along the coastline. The Kandla port handled around 92 mn tons in 2014–15. Petroleum, oil and lubricants (POL), coal, fertilizers and iron ore are major commodities in the port traffic at Kandla. Gujarat is a leader in industrial sectors such as chemicals, petrochemicals, dairy, drugs and pharmaceuticals, cement and ceramics, gems and jewelry, textiles, and engineering, some of which are discussed subsequently.
According to the report, India currently accounts for only 0.45 per cent of the global shipbuilding market and could target 3–4 mn DWT of the global shipbuilding capacity by 2025. With the recent policies & initiatives by the Government of India, the unfavorable cost differential faced by the Indian shipyards is expected to reduce Logistics.