Andhra to Boost Port Economy with ₹3,500 Cr Shipbuilding Project: CM Naidu.

Andhra Pradesh Chief Minister N Chandrababu Naidu has announced a strategic plan to transform the state into a major hub for a port-based economy, leveraging its extensive 1,000-kilometre coastline. The strategy involves establishing ports or fishing harbours at approximately every 50-kilometre interval along the coast.

In a press release issued on Tuesday, the Chief Minister stated that this comprehensive plan is expected to significantly spur economic growth across Andhra Pradesh, generate substantial employment opportunities, and build essential infrastructure.

"'We have unveiled a strategic plan to build a port-based economy by harnessing Andhra Pradesh's 1,000-kilometre coastline,' said Naidu in the release."

A cornerstone of this ambitious strategy is the proposed establishment of a major Ship Building and Repair Cluster at Dugarajapatnam in Nellore district. This initiative is being advanced as part of the central government's commitments made during the state's bifurcation.

Based on an initial feasibility report, the cluster is planned to be developed over a sprawling 2,000 acres. This area will be divided, with 1,000 acres designated for core ship-building units and the remaining 1,000 acres for ancillary industries that will support the main operations.

The vision for the Dugarajapatnam cluster includes setting up a greenfield port integrated with the shipbuilding and repair facilities. The design incorporates four dry docks, multiple outfitting jetties, and a ship-lift facility.

The funding model for the core infrastructure involves an estimated central government investment of ₹3,500 crore. The Government of Andhra Pradesh's contribution will be in the form of land provided as equity for the project.

Chief Minister Naidu projected that the project, which is intended to attract global ship-building players through a dedicated Special Purpose Vehicle (SPV), is expected to draw a total of ₹26,000 crore in investments. This influx of investment is anticipated to create 5,000 direct jobs within the cluster and generate an additional 30,000 indirect jobs in related sectors.

To ensure swift progress, the Chief Minister has instructed state officials to prepare a detailed action plan for expediting the project's implementation. He also emphasised the crucial need to improve cargo movement through Visakhapatnam Port, highlighting its importance for the state's overall development trajectory.