Visakhapatnam Port Authority to approve Dugarajapatnam port SPV on February 6

VPA is set to approve the Dugarajapatnam Port SPV on February 6, advancing a major maritime development project.

The long-pending Dugarajapatnam Greenfield Port and National Mega Shipbuilding Cluster in Tirupati district is set to move into the next phase, with the Visakhapatnam Port Authority expected to formalise the creation of a Special Purpose Vehicle at its board meeting scheduled for February 6.

Sources in the VPA said the Dugarajapatnam project is one of 15 to 16 agenda items listed for discussion at the meeting to be held at the VPA office here. The authority, which generally convenes board meetings once every two to three months to take major policy decisions, is likely to grant key administrative clearances to expedite the Rayalaseema project in the presence of the VPA Chairman.

The project, estimated to cost ₹29,662 crore, or about $3.5 billion, is a key component of the Union Government’s Maritime India Vision 2030 and the Maritime Amrit Kaal Vision 2047.

The proposed SPV will serve as the main execution vehicle for the project, with the VPA and the Andhra Pradesh Maritime Board acting as joint partners on behalf of the Andhra Pradesh government.

Under the arrangement, the VPA will provide technical expertise for developing a world-class port and shipbuilding facility under the Shipbuilding Development Scheme. The State government will contribute land as its equity in the SPV. About 2,000 acres will be required for the core port project, while another 1,000 acres has been earmarked for ancillary industries.

The mega project envisages an anchor shipyard with a capacity of 0.5 million Gross Tonnage per annum and a 2 km-long waterfront designed to support an integrated ecosystem for shipbuilding and ship repair. The project is proposed to be completed within 10 years of commissioning.