NEW DELHI: Centre has decided to scrap the proposal to develop a greenfield port at Dugarajapatnam in Nellore district. Niti Aayog and other experts shared that the port was not viable. Niti Aayog raised objections on the rate of return on the proposed port due to its proximity to already established ports at Krishnapatnam, Chennai and Ennore.
Sources said the Centre has already communicated the same to the State Government. The project was hanging fire for the past four years due to technical and financial reasons.
Interestingly, sources said that the Centre had asked the State to propose another major project instead of Dugarajapatnam Port.
The Centre further conducted two separate studies to evaluate the project's viability. A US-based multinational consultancy firm conducted an in-depth study on the same.
The consultancy firm said that the port's location was ill-suited as it was close to the satellite launch station at Sriharikota and a protected bird sanctuary at Pulicat lake. "It will be tricky to handle commercial operations at the port as permits would be necessary from authorities at Shar. Proximity to Pulicat lake will hamper development plans of the port," said a senior Andhra Pradesh Government official.