Hyderabad Andhra Pradesh chief minister N Chandrababu Naidu on Tuesday announced establishment of a shipbuilding and repair cluster over 2,000 acres in Dugarajapatnam in Tirupati at a cost of ₹3,500 crore.
An official statement from the chief minister’s office (CMO) said the CM met a team of officials from the Union ministry of ports, shipping and waterways, headed by Union secretary T K Ramachandran, and senior state officials to discuss the project.
According to the Andhra Pradesh Reorganisation Act, 2014, the central government had committed to establish a port at Dugarajapatnam on the coast of Bay of Bengal. However, the Union ministry did not find the port a viable proposition and proposed to establish a shipbuilding and repair cluster.
“The project, based on an initial feasibility report, is proposed to be developed over 2,000 acres through collaboration between the central and state governments,” the CMO statement said.
The plan includes setting up a greenfield port integrated with a shipbuilding and repair hub featuring four dry docks, outfitting jetties, and a ship-lift facility.
“Of the 2,000 acres, around 1,000 acres will be allocated for core shipbuilding units and the other 1,000 acres for ancillary industries. The estimated central investment for the project is ₹3,500 crore, with the state government contributing land as its equity,” the statement said.
{{/usCountry}}“Of the 2,000 acres, around 1,000 acres will be allocated for core shipbuilding units and the other 1,000 acres for ancillary industries. The estimated central investment for the project is ₹3,500 crore, with the state government contributing land as its equity,” the statement said.
{{/usCountry}}A special purpose vehicle (SPV) will be formed to attract leading global players in the shipbuilding sector to implement the project.
During the meeting, officials informed the CM that the project is expected to attract investments worth ₹26,000 crore, generate direct employment for 5,000 people, and create indirect employment for approximately 30,000 more.
Currently, Andhra Pradesh lacks dedicated infrastructure for ship repairs and maintenance. As a result, the state has been relying on facilities in Kochi (Kerala), Mumbai (Maharashtra), and private shipyards in Gujarat.
Officials said that nearly 300 ships arrive in India annually for recycling and with a strategic location on the eastern coastline, Andhra Pradesh aims to tap into this opportunity. The state government has submitted a proposal to the Centre to establish an international-standard ship repair and recycling facility.
Naidu instructed officials to formulate a detailed action plan to advance the project. Other ongoing port and coastal development initiatives were also reviewed during the meeting, the statement said.
The CM asked the authorities to work out a strategic plan to develop a port-based economy by harnessing Andhra Pradesh’s extensive 1,000-kilometre-long coastline, underlining that the state will work towards establishing a port or fishing harbour every 50 kilometres to spur economic growth, employment, and infrastructure development.
“The discussions focused on fast-tracking port infrastructure and maritime development projects,” the statement said.
Naidu also asked the Central government to make cargo movement via Visakhapatnam Port more cost-effective, recognizing it as a key strategic asset for the state. At present, Andhra Pradesh handles approximately 117.62 million tonnes of cargo annually through its ports.
The government has set a goal for Andhra Pradesh to handle 25% of India’s total port cargo over the next 20 years. Accordingly, focus has intensified on enhancing port infrastructure and operational capacity. The development of new ports is expected to significantly boost maritime activity in the region, the statement said.