"Andhra Pradesh has cleared the way for the development of a brand-new port and airport."

The Andhra Pradesh government has approved a proposal allowing the AP Maritime Board to initiate steps for setting up a greenfield port and a shipbuilding cluster at Dugarajapatnam in Tirupati district.

The project will be developed under the Shipbuilding Development Scheme of the Union Ministry of Ports, Shipping and Waterways, according to a Government Order issued recently.

As part of the plan, the AP Maritime Board will acquire 2,000 acres of land for the project and transfer it to a special purpose vehicle (SPV) to be formed with the Vizag Port Trust. The SPV will be set up on a 50:50 basis in line with the scheme’s guidelines and will have equal representation from the State government and the Vizag Port Trust.

The board will also seek the necessary statutory approvals and select a development partner for setting up the shipyard and associated infrastructure.