SPV soon for shipbuilding and repair cluster at Dugarajapatnam
Mega joint venture project is envisaged with a total investment of Rs 29,662 crore
image for illustrative purpose
Visakhapatnam: A special purpose vehicle (SPV) will be formed soon for the Visakhapatnam Port Authority (VPA) and Andhra Pradesh Maritime Board (APMB)'s joint venture for establishing a major port-cum- shipbuilding and ship repair cluster at Dugarajapatnam in Tirupati district at a total investment of Rs29,662 crore.
VPA signed an MoU to this effect at the India Maritime Week held in Mumbai in October to generate large-scale employment, give a shot in the arm to India's Make in India Mission and create modern infrastructure to expedite maritime growth as per the decision of Ministry of Ports, Shipping and Waterways (MoPSW).
"The formation of SPV and other important issues will figure at our board meeting slated for February 6," VPA Deputy Chairperson Roshni Aparanji Korati, said on Monday. She told Bizz Buzz that the Dugarajapatnam project is prestigious for both the Central and State governments aimed at propelling growth in the region and strengthening the maritime infrastructure.
"It will be an integrated project with port infrastructure, shipbuilding and repair facilities," she said. As per TERP study, it will have four drydocks and an annual capacity of eight Cape size vessels.
HD Korean Shipbuilders Offshore Engineers Ltd had a dialogue with the officials of VPA and Andhra Pradesh Government on the Dugarajapatnam project at the India Maritime Week.
Referring to the proposed investment of VPA in the Mulapeta Port in Srikakulam district, she said they are expecting an encouraging response from the State Government for diverting some of its cargo as part of diversification. Earlier, VPA had proposed to pick up equity in Mulapeta Port (erstwhile Bhavapadu) being developed by APMB with an annual capacity of 23.53 million tonnes in the first phase at a cost of Rs4,362 crore.
Sometime ago, VPA had made a formal proposal to invest Rs1,500 crore to take part in developing the port by transferring adjacent 2,000 acres of salt land to establish a Special Economic Zone or port-based industrial hub. On VPA performance during the current fiscal, Roshni said they are confident of reaching an all-time high throughput of 90 million tonnes as against 82 million tonnes last year.
As on date, the port handled 74.6 million tonnes with a year-on-year growth of 10 percent. The port has already set a 100 million tonnes target during next fiscal.
