Shipbuilding cluster at Dugarajapatnam to give fillip to A.P.'s maritime sector
Prime Minister Narendra Modi is likely to make an announcement of the project in August and ground-breaking might happen a little later, if everything goes as per plan. It will be one of the three such clusters proposed to be developed in India, the other two being in Tamil Nadu and Gujarat.
The proposal to have the cluster at Dugarajapatnam is set to be placed before the Union Cabinet for its approval, according to Secretary (Industries & Commerce) N. Yuvaraj, who told The Hindu that a 2,000-acre land parcel has already been identified at Dugarajapatnam, and the process of acquiring land and commissioning other civil works will begin after the Centre gives the green signal. Half the land will have the shipbuilding facility, and the remaining 1,000 acres will be allotted to the downstream industries.
The Government of India (GoI), the A.P. government and private shipbuilders will sign a tripartite agreement and float a Special Purpose Vehicle (SPV) for taking the project forward.
The GoI's role will be to construct the seaport while the State government gives land to the ship builders, who will develop the cluster. The land lease rent will be the revenue for the SPV.
Mr. Yuvaraj said most of the commercial shipbuilding and repairs in the world are being done by the Japanese and Koreans, with companies such as Imabari Shipbuilding Co. Ltd, Hyundai and Kawasaki Shipbuilding Corporation being the dominant players.
As on date, commercial vessels exceeding 1.50 lakh deadweight tonnage (DWT) are not built in India. Larger ships are being constructed only in the defence sector.
The A.P. government is batting for the development of the shipbuilding cluster at Dugarajapatnam due to the availability of the required 2,000 acres of land there. Machilipatnam and Bhavanapadu are also potential locations, but only 500 and 300 acres are available.
Moreover, Dugarajapatnam has a higher draft of 14 meters compared to 10 meters each at the other two places.
Given the fact that a seaport is to be built at Dugarajapatnam as per the A.P. Reorganization Act, 2014 and its advantages over the other two identified locations, the shipbuilding cluster will in all likelihood start taking a tangible shape there in the foreseeable future.
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