CM Naidu Announces Strategic Plan To Develop Port Based Economy

Vijayawada:Chief Minister Nara Chandrababu Naidu has announced a strategic plan to develop a port-based economy by harnessing the extensive 1,000km-long coastline in AP.

The plan includes setting up a port or a fishing harbour for every 50km distance, to give a major boost to the state’s economic growth, employment generation and infrastructure development.

Chairing a review meeting with officials from the Union ministry of ports, shipping and waterways at the Secretariat here on Tuesday, Naidu discussed at length on fast-tracking the development of port infrastructure and maritime development projects in the state.

Present at the meeting were also ports secretary TK Ramachandran and some other state officials.

The meeting discussed establishing a ship building and repair cluster at Dugarajapatnam in Nellore district as part of Centre’s commitment during the 2014 bifurcation. Based on an initial feasibility report, the project can be developed over 2,000 acres through collaboration between the Centre and the state government.

The plan includes setting up a greenfield port integrated with a ship building and repair hub featuring four dry docks, outfitting jetties and a ship-lift facility.

Out of 2,000 acres, 1,000 acres can be allocated for core ship building units and the remaining land for setting up ancillary industries. The estimated investment from the Centre is `3,500 crore while AP would contribute land as equity.

A Special Purpose Vehicle would be formed to attract leading global players in the ship building sector to implement the project.

The officials said the project was expected to attract a total investment of `26,000 crore with scope for direct employment to 5,000 persons and indirect employment to nearly 30,000 persons.

The chief minister directed the officials to come up with a detailed action plan to take the project forward. Naidu urged the central officials to make cargo movement via Visakhapatnam Port more cost-effective by recognising this as a key strategic asset for the state.

Officials informed the CM about the emerging opportunities in cruise tourism in the state. Naidu advised the officials to explore river cruise circuits in picturesque regions like Polavaram, Srisailam and Nagarjuna Sagar to boost tourism and local economies.