Amaravati,  The government of Andhra Pradesh on Wednesday formally launched the work for development of Ramayampet Port in Nellore district.

Chief Minister Jagan Reddy laid the foundation stone for the project which is expected to be a boon for overall economic development of the state, especially Nellore and Prakasam districts.

The project, which is estimated to cost Rs 11,000 crore, will be completed in three phases.

The state government will be building the port with its own resources to generate more revenue.

The government has set a target of completing first phase at a cost of Rs 3,736 crore in 36 months.

Four berths will be developed under the first phase. The government expects once completed the port will handle 25 million tonnes a year.

The Nellore district administration has acquired 803 acres of land and handed it over to the Andhra Pradesh Maritime Board (APMB).

Addressing the evacuees, the chief minister said the project would boost economic activity in the state.

He said the port would provide direct employment to thousands of people and indirect employment to lakhs.

He thanked the villagers who came forward to give land and the banks which provided loans. He assured the local people that 75 per cent of the jobs in the port will be given to them.

The chief minister said in addition to the six existing ports in the state, four new ports were being developed. He said nine shipping harbours were also being developed.

The Then chief minister Chandrababu Naidu had also laid the stone for the port on January 9, 2019.

Jagan Mohan Reddy said that Chandrababu Naidu did nothing for five years but laid foundation stone for the port just before elections without any approvals.

Though the setting up of a port at Dugarajapatnam was part of the AP Re-organisation Act, the proposal was put off following objections raised by the Indian Space Research Organisation (ISRO).

SRO cited security issues because of the proximity of the Spaceport close to Sriharikota, as also ecological issues related to the Nelapattu Bird Sanctuary and Pulicat Lake. NITI Aayog felt that Dugarajapatnam was not viable technically and economically and advised the state to suggest an alternative place.

The YSR Congress government opted for Ramayapatanam and formed an SPV to construct a non-major port in February 2020.

Ramayampet port is coming up not far from Krishnapatnam Port, which is already overcrowded with cargo.

Krishnapatnam Port was last year taken over by Adani Group from Navayuga Engineering Company (NEC).