To develop mega shipbuilding, ship repair and associated infrastructure cluster at Dugarajapatnam, Andhra Pradesh Maritime Board and Visakhapatnam Port Authority, have entered into a Memorandum of Understanding, to form a special purpose vehicle (SPV) which will be responsible for establishing a National Mega Shipbuilding Cluster in Andhra Pradesh.

The SPV, National Shipbuilding & Heavy Industries Park Andhra Pradesh Ltd (NSHIP-AP Ltd), will be a 50/50 joint venture between the two entities, and has been mandated to plan, develop and operationalise a greenfield port and national mega shipbuilding cluster at Dugarajapatnam, located in the state's Tirupati District.

The SPV will promote an integrated shipbuilding ecosystem in alignment with the Shipbuilding Development Scheme, Maritime India Vision 2030 and Maritime Amrit Kaal Vision 2047, unveiled by the Ministry of Ports, Shipping and Waterways. The NSHIP-AP Ltd will be the second shipbuilding cluster SPV to be set up in a coastal state after Tamil Nadu.

According to a notification from the Government of Andhra Pradesh, apart from shipbuilding, ship-repair, heavy engineering and undertaking allied marine infrastructure, the objectives of the SPV will comprise, planning and allotment of land to shipyards, ancillary industries and maritime industrial units within the cluster, implementation of projects through appropriate models including public private partnership, concession, lease or other commercial arrangements and coordination with private shipyard developers and industrial partners.

It will also be responsible for mobilisation of resources, execution of contracts, preparation of detailed project reports, feasibility studies and undertaking project management and monitoring functions for cluster development as well as promotion of maritime manufacturing ecosystem.

In the SPV, the Government of Andhra Pradesh will be represented by the Andhra Pradesh Maritime Board and Government of India by Visakhapatnam Port Authority.

The union government has budgeted Rs 19,989 crore for the Shipbuilding Development Scheme. The scheme aims to develop three-four greenfield shipbuilding clusters, limited to one cluster per state.

According to the ministry, under the scheme greenfield shipbuilding clusters will receive 100 per cent capital support for common maritime and internal infrastructure through a 50/50 centre-state special purpose vehicle, while existing shipyards will be eligible for 25 per cent capital assistance for brownfield expansion of critical infrastructure such as dry docks, shiplifts, fabrication facilities and automation systems.

Source: ET Infra. Com 

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