The Union government’s shipbuilding thrust is giving a fresh lease of life to Dugarajapatnam in Tirupati district of Andhra Pradesh with the state government picking the location – that was previously identified to build a major port per the A P Reorganisation Act – to host a shipbuilding and port cluster, a top official has said.
“Dugarajapatnam was selected to build a major port as part of the bifurcation of Andhra Pradesh. It is a commitment given by the Centre. We want to capitalise on that and develop a port as well as a shipbuilding cluster there,” Praveen Adhithya C V, Chief Executive Officer, Andhra Pradesh Maritime Board (APMB), said.
The Union government, through state-owned Visakhapatnam Port Authority, has hired RITES Ltd, a railway public sector undertaking, to undertake a technical study on developing a maritime cluster comprising a port, shipbuilding facility and port-led industries at Dugarajapatnam, Adhithya said.
“A technical study is underway on how best we can integrate the three facilities. Once the RITES report comes in a few weeks, the modalities of development will be worked out,” the APMB CEO said.
The Andhra Pradesh government will also look at integrating the proposed maritime cluster at Dugarajapatnam, located south of Krishnapatnam, with the Union government’s industrial corridors and the planned shipbuilding policy.
“Whether we are able to tap into that is one area which is under discussion,” Adhithya stated.
Keeping in view the draft availability, the state government has also found Mulapeta in Srikakulam district and Ramayapatnam in Prakasam district to be conducive for developing port and shipbuilding clusters, along with setting up ancillary industries.
In 2013, the Cabinet Committee on Economic Affairs (CCEA), under the United Progressive Alliance (UPA) government led by Manmohan Singh, approved building a new port at Dugarajapatnam as part of a plan to expand port capacity. The new port was to be set up as a major port under the Companies Act with equity participation of 74% from the Central government through Visakhapatnam Port Authority and 26 per cent from the Andhra
Pradesh government.
It was subsequently included as a part of the AP Reorganisation Act, 2014.
However, the port project stalled over viability concerns.
“The development of a new port at Dugarajapatnam was examined by NITI Aayog, Ministry of Shipping, Ministry of Finance and Government of Andhra Pradesh, and it has been concluded that the project will not be viable due to strong competition from nearby ports of Krishnapatnam, Ennore and Chennai,” according to a 2018 note written by the Ministry of Ports, Shipping and Waterways.
(source: ET Infra)
