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.
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.
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.
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.
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.
