Andhra Pradesh gives Nod to Greenfield Port, Mega Shipbuilding Hub at Dugarajapatnam

DUGARAJAPATNAM : The Andhra Pradesh Government has granted formal approval for initiating the establishment of a Greenfield Port along with a National Mega Shipbuilding Cluster at Dugarajapatnam in Tirupati district.

The project will be developed under the Shipbuilding Development Scheme (SbDS) of the Ministry of Ports, Shipping and Waterways (MoPSW).

Under the approval, the Andhra Pradesh Maritime Board (APMB) has been authorised to take forward the development of both the port and an anchor shipyard with an annual capacity of 0.5 million gross tonnes.

The shipbuilding cluster is planned to be realised within a maximum timeframe of 10 years from the commissioning of the shipyard at Dugarajapatnam.

The decision is based on the findings of a Techno-Economic Feasibility Report (TEFR) prepared by RITES, with coordination support from APMB and Visakhapatnam Port Trust (VPT).

As per the scheme guidelines, APMB has received permission to form a special purpose vehicle (SPV) in an equal 50:50 partnership with VPT.

The SPV’s board will comprise an equal number of directors nominated by the State government and VPT, ensuring balanced representation in line with the national framework for the project.

The government has also cleared the acquisition of around 2,000 acres of land for setting up the National Mega Shipbuilding Cluster.

APMB has been authorised to mobilise the required resources to complete the land acquisition process and transfer the land to the SPV as the State’s equity contribution.

In addition, APMB has been empowered to take all necessary steps through the SPV to secure statutory approvals for both the Greenfield Port and the shipbuilding cluster.

This includes selecting an appropriate development partner for the shipyard, strictly in accordance with the guidelines prescribed under the Shipbuilding Development Scheme.