A Greenfield Port to also be integrated with the project
In a major development that could significantly boost the maritime and ship building sector in Andhra Pradesh the state government along with senior officials from the shipping ministry recently held a meeting to discuss a plan for establishing a Ship Building and Repair Cluster at Dugarajapatnam in Nellore district.
AP’s Chief Minister Mr N. Chandrababu Naidu chaired a comprehensive review meeting at the state secretariat with Mr T.K. Ramachandran, Secretary, Union Ministry of Ports, Shipping and Waterways, and other senior officials in this regard.
‘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 government’ said an official release from the state government.
The plan includes setting up 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 central investment for the project is Rs 3,500 crore, with the Government of Andhra Pradesh contributing land as equity.
To implement the project, a Special Purpose Vehicle (SPV) will be formed to attract leading global players in the shipbuilding sector.
Officials informed the Chief Minister that the project is expected to bring in total investments of Rs 26,000 crore, generate direct employment for 5,000 people, and create indirect employment for approximately 30,000 more.
The Chief Minister instructed officials to immediately formulate a detailed action plan to advance the project. Other ongoing port and coastal development initiatives were also reviewed during the meeting.
In addition, Mr Naidu 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. Additionally, Mr Naidu urged central officials to make cargo movement via Visakhapatnam Port more cost-effective, recognizing it as a key strategic asset for the state.
The Chief Minister was also briefed on emerging opportunities in cruise tourism. He directed officials to explore river cruise circuits in picturesque regions like Polavaram, Srisailam & Nagarjuna Sagar to boost tourism & local economies.
