Andhra Govt Proposes Dugarajapatnam for Shipbuilding and Port Cluster Development.

The Andhra Pradesh government has proposed Dugarajapatnam in Nellore district as the site for a new shipbuilding and port cluster, breathing new life into the area. This comes as part of the Union government's initiative to boost the shipbuilding sector. Dugarajapatnam was originally identified under the Andhra Pradesh Reorganisation Act for a major port development, a commitment made by the Centre during the state’s bifurcation.

Praveen Adhithya C V, CEO of the Andhra Pradesh Maritime Board (APMB), confirmed that the state is now leveraging this commitment to establish both a port and a shipbuilding cluster at Dugarajapatnam. "We want to capitalise on the previous promise and develop a port along with a shipbuilding cluster there," Adhithya said.

The Union government, through the Visakhapatnam Port Authority, has engaged RITES Ltd, a public sector undertaking, to conduct a technical study on how to integrate a port, shipbuilding facility, and port-led industries into a maritime cluster at Dugarajapatnam. The study is expected to guide further development plans.

"We are awaiting the RITES report, and once it is in, we will work out the modalities for development," Adhithya added. Additionally, the state government plans to align the proposed maritime cluster with the Union government’s industrial corridors and shipbuilding policy.

Beyond Dugarajapatnam, the Andhra Pradesh government is exploring other locations, including Mulapeta in Srikakulam district and Ramayapatnam in Prakasam district, for port and shipbuilding clusters, with plans for ancillary industries.

The Dugarajapatnam port project was initially approved by the Cabinet Committee on Economic Affairs (CCEA) in 2013 under the UPA government but faced delays due to viability concerns. Despite this, it was included in the AP Reorganisation Act of 2014. However, the project faced setbacks over competition from nearby ports such as Krishnapatnam, Ennore, and Chennai, leading to a re-evaluation of its feasibility by NITI Aayog, the Ministry of Shipping, and the Ministry of Finance in 2018.

ET