RITES is conducting the feasibility study
Visakhapatnam Port Trust, which is on an expansion mode, will be the lead partner in the major port coming up at Dugarajapatnam in Vakadu mandal of Nellore district.
Though Nakkapalli in Visakhapatnam and Ramayyapatnam in Prakasam districts were also considered, the high-power committee set up by the government to identify suitable locations in AP, has finally zeroed in on Dugarajapatnam, which is close to ISRO’s Sriharikota and Krishnapatnam Port.
As per the decision taken by the Cabinet Committee on Economic Affairs in May, two major ports will be developed one at Sagar in West Bengal and one in AP. The two ports are expected to have combined cargo handling capacity of 104 million tonne with an estimated investment of Rs.15,820 crore. RITES is presently conducting the feasibility study for Dugarajapatnam. “We will have 89 per cent equity with 11 per cent from the State Government. A special purpose vehicle will be formed to implement the project,” VPT officiating Chairman G.V.L. Satya Kumar said on Tuesday. Talking to reporters to announce hosting of East Coast Marine Business Summit-2013 here, he said initially there would be four berths with an investment of Rs.4,000 crore. The project was likely to cost Rs.9,500 crore once it became fully operational.