Govt clears Sagarmala Development Co with Rs 1K cr initial share capital

To give a push to port-led economic development under its ambitious Sagarmala project, the government on Wednesday approved incorporation of Sagarmala Development Company under the Companies Act with Rs 1,000 crore as initial authorised share capital.

"The Union Cabinet chaired by Prime Minister Narendra Modi has approved the incorporation of Sagarmala Development Company (SDC) under the Companies Act, 2013," an official statement said.

Sagarmala Development Company (SDC) will provide equity support to the project Special Purpose Vehicles (SPVs) and funding support to the residual projects under the Sagarmala Programme, the Ministry of Shipping said in the statement.

"SDC will be incorporated under the Companies Act, 2013, with an initial Authorized Share Capital of Rs 1,000 crore and a Subscribed Share Capital of Rs 90 crore," the statement said. SDC will be under the administrative control of the Ministry of Shipping. The government said identified projects will be implemented by relevant ports, state governments / maritime boards and central ministries, mainly through private or PPP (public private partnership) mode.

It said SDC will Identify port-led development projects and assist the project SPVs in project development and structuring activities, bidding out projects for private sector participation, putting in place suitable risk management measures for strategic projects cutting across multiple states / regions and obtaining requisite approvals and clearances.

Since the Identified projects will be undertaken by multiple agencies, SDC will also work as the nodal agency for coordination and monitoring of all the currently identified projects as well as other projects emerging from the master plans or other sources.