AP govt moots Dugarajapatnam maritime cluster with Centre funding
Centre had proposed an integrated greenfield port with active involvement of VPA and govt funding
image for illustrative purpose
Visakhapatnam: After putting it in the cold storage for finding it unviable, the Dugarajapatnam Port proposed during the UPA-2 Government in 2013-14 as part of promise made at the time of bifurcation, has now been revived for development as maritime cluster consisting of a port, shipbuilding facility and port-led industries.
The Central Government, which promised to fund a major port on the East Coast and another on the West Coast to give a boost to port-led development, almost shelved the idea due to stiff competition posed by ports at Krishnapatnam, Ennore and Chennai. There were also environmental concerns in certain quarters that it may attract objections due to its close proximity to Pulicat Lake and ISRO's Sriharikota satellite launching facility.
Initially, the Centre had proposed an integrated greenfield port with active involvement of Visakhapatnam Port Authority (VPA) and funding from the Government of India. When contacted, a senior VPA official told Bizz Buzz that the modalities on the equity participation are yet to be finalised. The land being given by the State will be converted into its equity. A special purpose vehicle will be formed once formal decision is taken to develop it as a maritime cluster as a fresh feasibility study is underway. The State already has two shipbuilding yards in Visakhapatnam viz. Hindustan Shipyard Limited and L&T Ship Building Centre. The State Government has sought support from the Centre for establishing a greenfield port integrated with a shipbuilding and repair hub featuring four dry docks, outfitting jetties, and a ship-lift facility. Of the 2,000 acres, 1,000 acres will be allocated for core shipbuilding units and the other 1,000 acres for ancillary industries. The estimated cost of the project is Rs.3,500 crore expected to be funded by the Government of India with Andhra Pradesh contributing land as its equity. Part of GoI's equity will be contributed by VPA, which is a major port under the Ministry of Ports, Shipping and Waterways.
After a formal proposal submitted by the TDP-led NDA Government to revive the project in a format, Chief Minister N Chandrababu Naidu recently held a review meeting with the Ministry of Ports, Shipping and Waterways Secretary TK Ramachandran. This was preceded by a meeting in Visakhapatnam with VPA Chairman Dr M Angamuthu.
During a review meeting, officials informed the Chief Minister that the project is expected to bring in total investments of Rs26,000 crore, generate direct employment for 5,000 people, and create indirect employment for approximately 30,000 more.
The ministry after the meeting with Naidu took to X to say: "The meeting focused on the State's strategic plans to achieve a port-based economy by leveraging its long coastline."
Naidu later announced a strategic plan to develop a port-based economy by harnessing Andhra Pradesh's extensive 1,000-kilometre-long coastline. He underlined that the State will work towards establishing a port or fishing harbour every 50 kilometres to spur economic growth, employment, and infrastructure development.
As part of the central government’s bifurcation-era commitment, a major initiative was discussed to establish a Ship Building and Repair Cluster at Dugarajapatnam in Nellore district. The project, based on an initial feasibility report, is proposed to be developed over 2,000 acres through collaboration between the central and state governments.
