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The Andhra Pradesh government is planning to develop a dedicated coastal highway connecting the Vizag port container terminal to NH-16 near Bhogapuram, passing through Rushikonda and Bheemili. The ₹6,300 crore project aims to improve connectivity between key infrastructure hubs like the port and the upcoming greenfield international airport.
Although the project has not yet been included in any Union government schemes, the state has submitted a proposal to the National Highways Authority of India (NHAI) for the construction of a six-lane coastal highway. Chief Minister N Chandrababu Naidu discussed the project in detail during a recent review meeting in Visakhapatnam.
A detailed project report (DPR) is currently under preparation. The state government has committed to significant contributions, including covering the ₹1,200 crore land acquisition cost, and has requested that the remaining funds be allocated by the Ministry of Road Transport and Highways and NHAI. Additionally, the state will provide 157 acres of land in Tarluwada for the establishment of a multi-modal logistics park (MMLP), which is expected to enhance logistics and transportation infrastructure. The MMLP will act as a key hub for the smooth movement of goods, improving connectivity between the Bhogapuram airport, Vizag port, and nearby industrial zones.
In support of the project, the state has granted exemptions on GST for steel and cement and waived royalty fees for essential materials like earth, gravel, aggregates, and sand. The government will also waive shutdown charges and the performance security bank guarantee required for the relocation of APTransco electrical utilities.
The total estimated cost for the project is ₹6,289 crore, including ₹1,974 crore for civil works and ₹4,315 crore for land acquisition. The proposed coastal highway will provide radial connectivity to national highways, tourism sites, industrial areas, and social infrastructure.
The DPR will also highlight potential areas for developing tourism attractions, logistics hubs, and service industries like tourism, healthcare, and education. It will support the growth of IT parks, port-based economies, urban infrastructure, and social amenities along the corridor. Additionally, government-owned lands along the route from Vizag to Bhogapuram will be identified for infrastructure development, such as beach resorts, playgrounds, food courts, and more, offering new economic opportunities for the region.
ET
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