calender_icon.png 15 May, 2025 | 4:26 AM

Andhra to develop port-based economy

15-05-2025 12:00:00 AM

Andhra Pradesh Chief Minister N Chandrababu Naidu has announced a strategic plan to develop a port-based economy harnessing the state's 1,000 kilometre-long coastline, establishing ports or fishing harbours at every 50 km interval.

The chief minister outlined that the plan is expected to spur economic growth in the state and generate employment and create infrastructure.

"We have unveiled a strategic plan to build a port-based economy by harnessing Andhra Pradesh’s 1,000-kilometre coastline," said Naidu in a press release issued on Tuesday.

As part of the central government’s bifurcation-era commitment, a major initiative was discussed to establish a Ship Building and Repair Cluster at Dugarajapatnam in Nellore district.

The project, based on an initial feasibility report, is proposed to be developed over 2,000 acres through collaboration between the central and state governments. Of the 2,000 acres, 1,000 acres will be allocated for core ship-building units and another 1,000 acres for ancillary industries.

The plan includes setting up a greenfield port integrated with a ship-building and repair hub featuring four dry docks, outfitting jetties, and a ship-lift facility.

The estimated central investment of the project is Rs 3,500 crore, with the Government of Andhra Pradesh contributing land as equity. The chief minister said that a Special Purpose Vehicle (SPV) will attract global ship-building players and the project will bring Rs 26,000 crore investments creating 5,000 direct jobs, and 30,000 indirect jobs.

The chief minister instructed officials to prepare a detailed action plan to expedite the project. He also emphasised improving cargo movement via Visakhapatnam Port, crucial to the state’s growth.

Keen on livestock sector as well

Chief Minister N. Chandrababu Naidu said that the sector not only contributes significantly to the Gross State Domestic Product (GSDP) but also holds the potential to uplift millions of poor families. Speaking at the Livestock Department – Tech AI 2.0 Conclave, the CM outlined a vision rooted in technology, sustainable practices, and inclusivity.

Highlighting the sector's economic importance, Naidu noted that livestock contributes 11.23% to the state's GSDP, with a current valuation of Rs.1.69 lakh crore. Andhra Pradesh ranks first in egg production, fifth in meat production, and seventh in milk production nationally. He recalled how, under his previous tenure, the livestock GSDP nearly doubled from Rs.43,127 crore in 2014–15 to ₹91,633 crore in 2018–19, achieving a Compound Annual Growth Rate (CAGR) of 21%. However, he criticized the previous government for slowing that growth to 11% between 2019–2024.

The CM asserted that 42 lakh families in the state depend on the livestock sector for their livelihood. “Dairy farming is a proven tool to improve the lives of the poor,” Naidu said. He contrasted the progress made during the TDP’s previous rule with the stagnation under the YSRCP government. “We doubled farmers’ incomes between 2014 and 2019. But the momentum was lost in the subsequent years.”

Citing data to back his economic vision, he compared the returns from various sectors: Rs.1.69 lakh crore from livestock, Rs.1.55 lakh crore from horticulture (grown over 18 lakh hectares), and only Rs.55,000 crore from traditional agriculture despite being cultivated over 50 lakh hectares. “That’s why we are focusing on expanding horticulture to 36 lakh hectares, given its higher revenue potential,” he explained.