Andhra Pradesh Greenlights Major Port and Shipbuilding Project
The Andhra Pradesh government has taken a significant step towards enhancing its maritime capabilities by approving the establishment of a greenfield port and a National Mega Shipbuilding Cluster at Dugarajapatnam in Tirupati district. This ambitious project will involve the acquisition of 2,000 acres of land and aims to bolster the state’s shipbuilding output significantly. Special Chief Secretary of Infrastructure & Investment, MT Krishna Babu, confirmed that these initiatives are part of the Shipbuilding Development Scheme (SbDS) under the Ministry of Ports, Shipping and Waterways.
Strategic Development and Collaboration
In a government order, MT Krishna Babu stated that the Andhra Pradesh Maritime Board (APMB) has been granted permission to proceed with the establishment of the greenfield port and shipbuilding cluster. To ensure effective oversight and development, a Special Purpose Vehicle (SPV) will be created, involving collaboration between the Ministry of Ports, Shipping and Waterways and the Andhra Pradesh government. This SPV will be supported by various entities, including the Visakhapatnam Port Authority (VPA), which will play a crucial role in the project’s execution.
The APMB will form a 50:50 partnership with the Visakhapatnam Port Trust (VPT), ensuring equal representation from both the state government and VPT on the board of directors. This collaborative approach is designed to streamline decision-making and enhance the project’s efficiency. Furthermore, the APMB has been authorized to complete the land acquisition process for the shipbuilding cluster and mobilize the necessary resources, transferring the acquired land into the SPV as state government equity.
The greenfield port and shipbuilding cluster will feature an anchor shipyard with a capacity of 0.5 million gross tonnage (GT) per annum, which is expected to be operational within ten years of commissioning. The project will be coordinated by both VPT and APMB, marking a significant advancement in the region’s maritime infrastructure.
Andhra Pradesh unveils maritime push with shipbuilding cluster
Ambitious Goals for Shipbuilding Output
In alignment with national objectives, the Andhra Pradesh government has also been tasked with selecting a partner for the development of the shipyard. The Government of India has set an ambitious target to increase shipbuilding output to 4.5 million GT per year by 2030, as part of the Maritime India Vision 2030 and Maritime Amrit Kaal Vision 2047 initiatives. Currently, India’s shipbuilding capacity stands at a mere 0.01 million GT per annum. The government aims to elevate India into the ranks of the top five shipbuilding nations by 2047, underscoring the strategic importance of this project for the country’s maritime future.
