Mangaluru: In a setback to Karnataka’s coastal tourism ambitions, the Prime Minister Narendra Modi-led union government has declined financial assistance under the Sagarmala scheme for the proposed Mangaluru-Maravanthe coastal passenger ferry service and the integrated coastal tourism and marina development project at Kota Padukere in Udupi district, citing a lack of fiscal space.

The projects were expected to enhance marine tourism, improve coastal connectivity and provide an alternative mode of transport along Karnataka’s coastline.

Replying to an unstarred question by Udupi-Chikkamagaluru MP Kota Srinivasa Poojary in the Lok Sabha, Union Minister for Ports, Shipping and Waterways Sarbananda Sonowal said the Karnataka government had submitted a feasibility report for the proposed passenger ferry service between Mangaluru and Maravanthe, along with a pre-feasibility study for an integrated coastal tourism and marina development project with ancillary infrastructure at Kota Padukere under the Sagarmala scheme.

According to the minister, the proposals highlighted the potential for marine tourism, water sports and passenger ferry services along Karnataka’s 320-km coastline. However, they could not be considered for financial assistance under the existing Sagarmala scheme due to the unavailability of fiscal space.

Earlier this year, the Karnataka Maritime Board proposed developing a 110-km coastal passenger ferry corridor between Mangaluru and Maravanthe at an estimated cost of Rs 37.8 crore. The project envisaged five terminals—Old Mangaluru Port, Hejmadi, Malpe, Kota and Maravanthe—and a concession period of 20 years.

The proposed corridor was aimed at creating a sustainable maritime transport network by integrating tourism and commerce while offering a scenic alternative to the congested NH-66. It was also expected to improve regional connectivity, promote sustainable transport and strengthen coastal tourism.

Reacting to the Centre’s decision, Yatish Baikamapady, chairman of the Airlines, Airport and Tourism Sub-Committee of the Kanara Chamber of Commerce and Industry, said he had never been optimistic about the proposal, arguing that ferry services could not compete with the speed and convenience of road transport. “Who will invest in such projects?” he asked.