Will Dugarajapatnam port usher in Seemandhra’s Growth?

dugarajapatnam-dugarajapatnam portNow that the bifurcation is of Andhra Pradesh is over, its high time Seemandhra politicians, entrepreneurs sat down and brainstorm on how to catalyze growth in the new state.

Dugarajapatnam and Krishnapatnam might be the key to usher in rapid industrialization in the lower Seemandhra belt and also bring in fortunes for the Ralayaseema districts as they lie in the hinterland. Along with the way, Telangana would also stand to benefit if these ports lend their helping handnot only to Telangana hubs but alos for SEZs along the coasta region.

The Shipping Ministry may seek support from the Finance Ministry for covering the viability funding gap for two major ports proposed in West Bengal and Andhra Pradesh.

“If the IRR (internal rate of return) goes down to something like 8%, I don’t expect people to bid too bullishly. So that portion has to be taken out, put on VGF (Viability Gap Funding). That is what I am trying to take to the Cabinet,” Shipping Secretary Vishwapati Trivedi told reporters on the sidelines of a CII event here.

At the Dugarajapatnam, the rate of return is 18% without the cost of land and therefore the Shipping Ministry is of the view that there is a need for VGF. VGF is government support that is extended to those projects that are economically justified but fall short of financial viability due to their longer gestation periods or other factors.

All Hurdles cleared for Dugarajapatnam Port at Nellore, Thanks to APIIC

APIIC, these days is taking a proactive, proindustrial, procitizen initiative.

Thanks to it fortaking the lead to clear remaining hurdles for the prestigious Dugarajapatnam port, the project as of today is on a priority fasttrack. The Sriharikota security concern issues and the doubts over the Pulikat lake raised by the green lobby have been addressed. The latest article in Deccan Chronicle below details the way forward for Dugarajapatnam port in Nellore

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Independence Day Update: Nellore’s Mega Sea Port and Airport a Reality Soon!

Nellore’s Mega Sea Port and Airport a Reality Soon as announced by the Finance Minister of Andhra Pradesh Mr. Anam Ramnarayan Reddy during his Speech in Nellore.

The Rs.8,000 crores Mega Seaport at Dugarajapatnam and the proposed Airport at Nellore would soon be a reality and change the Industrialization map of Nellore permanently.

We all wish the Govt, Ministers, APIIC to make this vision a reality at the earliest!



Setting up of Major Ports Update: Sagar in West Bengal + Dugarajapatnam Port in AP

The Government has decided to set up two new major ports – one each at Sagar in West Bengal and the other at Dugarajapatnam in Andhra Pradesh. In respect of the Sagar Port, RITES has estimated capital cost (including connectivity project) at Rs. 7820 crores. The tentative cost for Dugarajapatnam has been estimated at Rs. 7988 crore by the Technical Committee set up by Ministry of Shipping. However, the feasibility study of the proposed location is also being carried out by RITES. In respect of Ports at Sagar and Dugarajapatnam, the concessions are targeted to be awarded in the financial year 2014-15.

The Government has initiated a series of measures to modernise Major Ports in the country. As part of the endeavour, in 2012-13, 32 projects were awarded involving an estimated cost of Rs. 6765 crores with capacity addition of 136.75 Million Tonnes Per Annum (MTPA). During the current financial year (till date) total number of projects awarded is 5 involving a capacity addition of 48.59 MTPA with an investment of Rs. 2045.25 crores.

This information was given by Minister of Shipping Shri G.K. Vasan in a written reply in the Lok Sabha on August 5th, 2013

Dugarajapatnam Port on a Fast Track..PMO sets deadline for Infra projects

In an effort to speed up the sluggish pace of the key infrastructure projects, the  Steering Committee that met on July 19 has set deadline for key infrastructure projects. The concerned departments and ministries are told to appoint nodal officers of a joint secretary rank to look after the project development who would submit weekly reports to the PMO

>>The Mumbai Rail Corridor project for which state support agreement is yet to be finalized has set the deadline for 31 January, 2014. It is expected that state support agreement and further developments on the projects will be seen by this date. The Steering Committee has also agreed that Ministry of Railways will come up with a decision on whether the RFQ will be re-issued within a week.

>>For the Locomotive projects in Madhepura and Marhowra a deadline of 30 January, 2014 has been set. The bidding process for the PPP project is expected to start by July end.

>>On the Dedicated Eastern freight corridor for a stretch of 125 km between Sonnagar-Mugulsarai is to be funded by Ministry of Railways and a stretch of 550 km between Dankuni to Sonnagar would be completed under the PPP model. The ministry is required to come up with exact deadlines for both these projects.

>> A deadline of 31 March 2014 has been set for Durgarajapatnam Port in Nellore district. Acquisition of 5000 acres of land is expected to be allocated in initial phase of this project costing about Rs 8,000 crore.

(Source:Business Standard)

Will Dugarajapatnam Port be taken up by the SPV Model?

Shipping min may commit Rs. 5,000 cr for two upcoming major ports

Wednesday, Jul 3, 2013, 6:42 IST | Place: Mumbai | Agency: DNA

“We are looking at an SPV model wherein the Centre would pitch in with 74% and the balance 26% would be the contribution from the state government,” said a shipping ministry official.

The Union shipping ministry is toying with the idea of adopting the special purpose vehicle (SPV) based model for the two major ports it is planning in Andhra Pradesh and West Bengal.

This would be in deviation from the trust based model, mandated by  Major Port Trust Act, 1963, and require the government to shell out Rs5,000 crore as equity for the two projects.

“We are looking at an SPV model wherein the Centre would pitch in with 74% and the balance 26% would be the contribution from the state government,” said a shipping ministry official. One port would be located at the Sagar island in West Bengal and the other most likely at Durgarajapatnam in Andhra Pradesh. There are 12 major ports in the country, which are under the direct control of the central government.

“The projects are likely to cost around Rs7,500 crore. The Sagar port would cost around Rs5,500 crore as there has to be a rail link connecting the port from the island. That link only will involve an investment of about Rs3,000 crore. With these projections the government will have to shell out equity worth Rs5,000 crore in both these projects. The state government will have to pitch in with the balance amount,” said the official.

The feasibility study for the projects is currently on and would be completed in the next two months. After the study is over, the ministry will circulate a Cabinet note for the SPV-based funding model for the projects. The two ports are high on the radar of the Prime Minister’s Office. The PMO, in its last week’s infrastructure sector review, has committed that the two projects will be awarded in the current fiscal.

The ministry of shipping has set up a target to award 25 projects worth Rs25,000 crore in a mix of public-private partnership and government spending in the current fiscal.

(Source: DNA)

FIVE Projects that will Transform Andhra Pradesh

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We will be covering in detail over the next few days FIVE landmark projects which are in pipeline, both in private and public sector, which will radically transform Andhra Pradesh in the years to come.

The Five projects we would be covering are:

1) Tada Industrial Hub

2) Sri City spreading across Chittor and Nellore Districts

3) National investment and manufacturing zone for Chittoor  & other SEZs planned in AP

4) Chennai-Bangalore Dedicated Industrial industrial corridor passing through Andhra Pradesh

5) Dugarajapatnam Port

Media Videos on Dugarajapatnam Port – The Past and The Present

Other than having a legendary historical past to it, Durgarajapatnam port – once favored by the Birtish as a major port of entry is seeing a phoenix like rebirth to its glory with the Center sanctioning a new major port there.

But the pains and continuous education efforts and hardships endured by various politicians and experts in highlighting its prominence is commendable and the fruits of it are there for everyone to see – Soon, Andhra Pradesh will surge ahead of other states as many industrial clusters are created around this port.

A chain reaction would follow : New Port –> More jobs –> More GDP–> Increased standard of living–> Better Infrastructure will be coming Andhra Pradesh’s way and especially hinterlands  of AP near to the port will see tremendous development once Duggarajapatnam port becomes operational.

We congratulate the silent warriors who relentlessly strived to see AP gets another major port. A small step by Center but a Gaint leap for Andhra Pradesh!

Enjoy the videos on Dugarajapatnam port here...

(Source Courtesy of the respective TV channels)

Government Fastracks Dugarajapatnam Port, RITES Calls for Geo Studies

Durgarajupatnam Port

Government is serious on speeding up the plans for port at Dugarajapatnam. The recent  steps its taken over the last few weeks are bound to silence doubting Thomases and those decrying that the port announcement is an election ploy.

Topographic & Hydrographic survey for the Port at Dugarajapatnam in Andhra Pradesh, Techno-Economic Feasibility Studies and  Geo-technical Investigations for Port facilities at Durgarajpatnam in Nellore have been initiated by RITES by tenders with clear deadlines for completion of surveys in less than 100 days and set the ball rolling for the prestigious port at Durgarajupatnam in 2013 itself.

RITES is a Government of India Enterprise was established in 1974, under the aegis of Indian Railways. RITES is incorporated in India as a Public Limited Company under the Companies Act, 1956 and is governed by a Board of Directors which includes persons of eminence from various sectors of engineering and management. RITES Ltd., an ISO 9001-2008 company, is a multi-disciplinary consultancy organization in the fields of transport, infrastructure and related technologies.

Industrial circles are now happy that Govt is walking the talk and port project roadmap is becoming a reality with all recent steps in the right direction, all coming in after recent Centre’s nod for a major port at Dugarajapatnam of Vakadu mandal in the district. .

Unless Industrialists and politicians of AP stop internal bickerings and learn from the unity shown by Maharastra, Tamlinadu, and Karnataka politicians (of all parties) in various water issues and their zeal to get infrastructure projects to their own states, the present momentum visible at Dugarajapatnam Port might lose steam as upcoming election politics takes center stage. People of Andhra Pradesh and especially Nellore residents sincerely wish that better sense prevails and for once all concerned especially politicians look at the big picture and stay united to see this landmark project fastracked for AP’s future progress and growth.

Vested interests who had lost out to Dugarajapatnam in the port race are now, with ulterior motives, crying fowl and creating hullabaloo and bringing to fore petty issues like depth of sea, insufficient land availability, ISRO concerns, possible environmental issues, and fisherman livelihoods etc to create confusion in the media and influence public opinion. These are issues which are common to any new upcoming port project anywhere in India and glorifying them as unique to only this port project speaks of the narrow mindsets of critics and their inertia in creating a new resurgent industrial India.

The objections of Isro and ecologists claims have all been addressed and taken cognizance of even when the project site was shortlisted. Sufficient land availability has been acknowledged by various revenue and govt bodies. The local fishermen are eager to see this project come up at Dugarajapatnam as more allied business opportunities and standard of living will increase for all involved in and around Duggarupatnam’s ecosystem.

Geographical Location:  Durgarajapatnam (Durgarajupatnam) is a small village with 2388 inhabitants, lies adjacent to Buckingham Canal, very near to sea shore in Vakadu Mandalam of Nellore District  of Andhra Pradesh. Important towns like Gudur is at a distance of 40 km and Vakadu at 10 km. It is surrounded with marshy land with tidal influence.

Hinterland Connectivity:

Road: Durgarajapatnam site is at a distance of about 33 km from Naidupet at NH-5 (connecting Chennai to Kolkata). Durgarajapatnam has got another 37 km  stretch black topped single lane road connecting NH 5 towards Gudur near Chillakur via Nellipudi,Chittedu, Kesavaram, Kadivedu, Mutyalapadu etc. This  alternate route is advantageous for the Gudur bound traffic. Another road starting from Sullurpet joins the connecting road from Naidupeta to  Durgarajapatnam after a distance 30 km. Thus the site is directly connected with NH -5 at three places (Sullurpet, Naidupet, and near Gudur) by three different existing roads.

Rail: Southern Central railway line passes very next to the NH-5 at about 30 km distance from the coast. However, major railway junction Gudur is 42 km.

Air: Chennai is the Nearest Airport, which is approximately 100 km from the site. A new airport is proposed for Nellore district.

Climate: The area experience hot and dry temperatures for many months of the year. Summer is typically hot touching temperature to above 40°C in May. Summer  temperatures can range from a minimum of 22°C and can rise up to a maximum of 41°C. Average temperatures during the day are usually around 35°C. The months  of April and May are prone to heat waves.




Duggarajupatnam in Andhra Pradesh is Center’s Choice for Next Gen Mega Port

Andhra Pradesh haNellore-AP-Durgarajupatnam ports finally good news coming its way and that too a big one.

Center has finalized Dugarajapatnam in Nellore District as its choice for the proposed Rs.8,000 crores port. This will radically change the industrial topography of AP over the next few years once the port becomes operational in the next few years.

Many Hinterlands in AP will get a big boost with scope for new industrial clusters emerging as logistical efficiency creates more export opportunities. Here is the latest press release on Dugarajupatnam port approval in local media…

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