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Following the vision of the Sagarmala Program to reduce logistics cost and time for the movement of EXIM and domestic cargo, a need was established for the development of port-proximate industrial capacities near the coast. It was felt that the utility component of these dedicated connectivity corridors can be further enhanced through Coastal Economic Zones (CEZs), and Coastal Economic Units (CEUs). To complement these initiatives Port-Linked Industrial & Maritime Clusters and Smart Industrial Port Cities have been introduced.

– ‘Coastal Economic Zones (CEZs): CEZs could be spatial economic regions comprising a group of coastal districts or districts with strong ties to the ports in that region. CEZs are also envisaged to tap synergies within the planned industrial corridor projects.

– Coastal Economic Units (CEUs): CEUs will be specific industrial state projects with a demarcated boundary similar to the Delhi–Mumbai Industrial Corridor Project (DMIC) nodes. The CEUs will house the industrial clusters / projects proposed within the CEZ’ (Port-led Industrialization, 2018).

Each CEZ will consist of multiple CEUs and more than one industrial cluster can be housed within a CEU. Within each industrial cluster there can be several manufacturing units. To accelerate the CEU development process, it is planned that CEUs be prioritized in locations where land parcels are available in areas close to a deep draught port and with strong potential for manufacturing (Port-led Industrialization, 2018). ‘For promoting port-led industrialization, 14 Coastal Economic Zones (CEZs) covering all the Ocean-facing States and Union Territories have been identified as part of the National Perspective Plan under the Sagarmala Program. The Perspective Plans for all 14 CEZs to have been prepared in consultation with relevant State Governments and Central Ministries’ (Press Information Bureau, 2018). The industries proposed for development include petrochemicals, cement, furniture, apparel, automotive, refining, steel, food processing, leather processing, power, electronics, shipbuilding and marine processing.

FIGURE 1: THE SAGARMALA PROJECT

Source: (Ministry of Surface Transport and Shipping website, n.d.)

In order to complete the spectrum of connectivity and economic corridors, India has also planned for the inland waterways project given the fact that India has multiple river crises across the entire country. With the exception of a few states, the river water is expected to be used for the inland waterways and cargo shipping.