The Hindu Business Line : AP proposes mega maritime project to develop coastal areas

IN a major development initiative that could spur growth in the coastal districts of Andhra Pradesh, the State Government has proposed to take up a mega project for the establishment of a national sea route and associated maritime infrastructure projects.

The proposal for the Rs 6,053-crore project has been submitted to the Union Ministry of Shipping in response to its invitation for proposals from the States as part of its policy to help develop maritime infrastructure with global standards in the country.

Reviewing the proposal here on Sunday, the Chief Minister, Dr Y.S. Rajasekhara Reddy, has directed the officials to ensure the timely sanction of the project, which is scheduled to take off in two-and-a-half years, according to an official release.

The project involves the setting up of 10 new ports, improvement of the existing minor ports, construction of a ship-repairing facility, promotion of coastal tourism, recreational facilities and other maritime infrastructure units.

According to the cost break-up of the proposed project, the development of ports at 10 new locations will cost Rs 3,290 crore; the construction of four trestle structures Rs 360 crore and improvements to the existing minor ports Rs 450 crore.

Logistics and warehouses will cost Rs 140 crore; the ship repair facility Rs 1,000 crore; fish landing and fishery infrastructure in seven new locations Rs 70 crore; coastal tourism and recreation Rs 40 crore and the oil spill response unit for the offshore Krishna-Godavari basin activities will cost Rs 100 crore.

The project will be implemented in four coastal districts — Srikakulam, Vizianagaram, Visakhapatnam and East Godavari. These districts were identified by the Indian Meteorological Department as non-cyclone prone areas compared to other coastal districts in the State.

Earlier, the State had chalked out plans for an industrial corridor between Kakinada and Visakhapatnam.

The maritime project is expected to provide substantial direct and indirect employment opportunities. According to the Government, the project will be taken up under the public-private partnership model.

Of the total estimated cost of Rs 6,053 crore, the State Government proposes to raise Rs 1,353 crore through the private sector, while the balance Rs 4,699 crore has been sought as a grant from the Union Shipping Ministry.

The preparation of detailed project reports (DPRs) will take six months and it will cost about Rs 500 crore, which will be included in the project cost. The Government proposes to prepare DPRs for various components and execute them as per a time-bound schedule.

For the effective implementation of the project, the State Government has proposed the setting up of a joint coordination committee under the guidance of the Union Ministry of Shipping.

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