The Centre is reworking the Sagarmala 2.0 initiative into a 10-year, ₹75,000-crore programme aimed at developing India into a global maritime hub with world-class ports and shipbuilding infrastructure, two persons aware of the matter said.
The new edition will complement the government’s ₹70,000-crore maritime package announced in September for building infrastructure to attract investment in shipbuilding, repairs, and breaking. This initiative also promotes domestic ship ownership and enhances port infrastructure.
The new version of Sagarmala 2.0, which was announced in March, will prevent duplication and emphasize extending financial aid to state governments to develop inland waterways and coastal regions, the first of the two persons said.
The reworked iteration, under discussion at the inter-ministerial level, may be included as part of the 2026-27 budgetary proposals, the second person added.
“The government is advancing the Sagarmala programme with Sagarmala 2.0, focusing on shipbuilding, repair, recycling, and port modernization to enhance India’s maritime competitiveness. Though a budgetary support of ₹40,000 crore was initially proposed for the scheme, this may be scaled up to around ₹75,000 crore to leverage investments of over ₹20 trillion over the next decade,” the second person said.
Sgarmala 2.0 is expected to support more projects than the first phase, which had over 800 projects.
Quereis emailed to the ministry of ports, shipping and waterways and the ministry of finance remained unanswered until publishing.
The continuation of the Sagarmala programme until 2035 aligns with the government’s vision of a developed and self-reliant India by 2047. The extended programme will accelerate port-led development and strengthen the country’s position as a global maritime leader.
Focus on the maritime sector
The proposal comes at a time when the government has shifted its focus back to supporting maritime development projects, following the announcement of a ₹70,000 crore package in September. The package includes a ₹25,000 crore Maritime Development Fund (MDF), a ₹20,000 crore Shipbuilding Financial Assistance Scheme (SBFA), and a ₹20,000 crore scheme for the shipping cluster development programme.
“The Sagarmala programme has been effective in the development of maritime projects in the country. But the government should properly discuss and frame any new scheme under the programme so that it does not become an initiative to benefit certain businesses but helps the growth of the entire sector,” said Rajiv Jalota, a maritime sector expert and former chairman of the Mumbai Port Authority and the Indian Ports Association.
“Also, the scheme should also support development state projects that would be important for the growth of the maritime sector. The programme should also see how the costs could be brought down so that movement of goods using sea or river routes becomes competitive.”
The 10-year Sagarmala programme, launched in March 2015, is the flagship initiative of the shipping ministry, aimed at revolutionizing the country’s maritime sector. The programme aims to streamline logistics, reduce costs, and enhance international trade competitiveness by shifting from traditional, infrastructure-heavy transport to efficient coastal and waterway networks. It focuses on port modernization, industrial growth, job creation, and sustainable coastal development, ensuring minimal infrastructure investment while maximizing economic impact.
Under Sagarmala 1.0, about 839 projects worth ₹5.79 trillion were identified, with 272 projects worth ₹1.41 trillion completed. The programme has seen 118% growth in coastal shipping over the last decade, resulting in reduced logistics costs and emissions. It also resulted in a 700% surge in inland waterway cargo movement, easing congestion on roads and railways.
Today, nine Indian ports are among the world’s top 100, with Vizag in the top 20 container ports globally.
With a 7,500-kilometre coastline, 14,500km of potentially navigable waterways, and a strategic position on key global trade routes, India holds immense potential for port-led economic growth.
