Japanese shipbuilder set to invest in Dugarajapatnam maritime cluster

Visakhapatnam: The proposal to set up a ship breaking unit as part of a maritime industrial cluster at Dugarajapatnam with funding from the Central Government and a major stake by Visakhapatnam Port Authority (VPA) has started yielding positive results with Japan's Imabari Shipbuilding evincing interest to take part in the project. The issue is understood to have figured during a bilateral discussion between Union Minister for Ports, Shipping Sarbananda Sonowal and Tarada Yushimichi, Vice Minister of International Affairs & Ministry of Land, Infrastructure, Transport and Tourism in Oslo sometime ago. The Japanese shipyard is keen on exploring joint venture opportunities in Andhra Pradesh and Gujarat.

The meeting assumed significance as it came close on the heels of Chief Minister N Chandrababu Naidu's assertion that they will set up a ship building and repair cluster at Dugarajapatnam. The State wants equity participation in the form land being provided out of estimated total project cost of Rs3,500 crore.

According to the State Government, the Dugarajapatnam project, once materialises will propel economic prosperity in the region as it will attract a total investment of Rs26,000 crore with 5,000 direct and 30,000 direct jobs

The project is mooted for development in 2,000 acres with half of it dedicated to core shipbuilding and the balance for ancillary industries.