Andhra Pradesh Government Approves Greenfield Port and Mega Shipbuilding Cluster in Tirupati District

The Andhra Pradesh government has approved the establishment of a greenfield port and National Mega Shipbuilding Cluster at Dugarajapatnam in Tirupati district, marking a significant step in the state's maritime infrastructure development. The project, announced on Friday, involves the acquisition of 2,000 acres of land and will be executed under the Shipbuilding Development Scheme of the Ministry of Ports Shipping and Waterways.

Project Structure and Implementation

Special Chief Secretary of Infrastructure & Investment (Ports) Department, MT Krishna Babu, issued a government order granting permission to the Andhra Pradesh Maritime Board to proceed with the establishment. The project will be managed through a Special Purpose Vehicle created between the Ministry of Ports Shipping and Waterways and the Andhra Pradesh government.

Partnership and Governance Framework

The Andhra Pradesh Maritime Board will form a 50:50 Special Purpose Vehicle with Visakhapatnam Port Trust, ensuring equal representation from the state government and VPT on the board of directors. The Ministry of Ports Shipping and Waterways will extend support to the SPV through its entities in the state, particularly the Visakhapatnam Port Authority.

The maritime board has been authorized to complete the land acquisition process, mobilize necessary resources, and transfer the acquired lands to the SPV as the state government's equity contribution. Additionally, the state government has empowered the maritime board to select a development partner for the shipyard.

Shipyard Capacity and Timeline

The National Mega Shipbuilding Cluster will feature an anchor shipyard with substantial capacity targets. The facility is designed to achieve 0.5 million gross tonnage capacity per annum within 10 years from its commissioning. This development will be coordinated jointly by Visakhapatnam Port Trust and the Andhra Pradesh Maritime Board.

National Maritime Vision Alignment

The project aligns with India's ambitious maritime development goals outlined in the Maritime India Vision 2030 and Maritime Amrit Kaal Vision 2047. The Government of India has established a target to achieve shipbuilding output of 4.5 million GT per year under these visions, representing a significant increase from the current capacity of 0.01 million GT per annum.

Through these comprehensive maritime visions, the Indian government aims to position the country among the top five shipbuilding nations globally by 2047. The Andhra Pradesh project represents a crucial component in achieving this national objective, contributing to India's maritime infrastructure expansion and shipbuilding capabilities enhancement.