India, May 14 -- Hyderabad Andhra Pradesh chief minister N Chandrababu Naidu on Tuesday announced establishment of a shipbuilding and repair cluster over 2,000 acres in Dugarajapatnam in Tirupati at a cost of Rs.3,500 crore.

An official statement from the chief minister's office (CMO) said the CM met a team of officials from the Union ministry of ports, shipping and waterways, headed by Union secretary T K Ramachandran, and senior state officials to discuss the project.

According to the Andhra Pradesh Reorganisation Act, 2014, the central government had committed to establish a port at Dugarajapatnam on the coast of Bay of Bengal. However, the Union ministry did not find the port a viable proposition and proposed to establish a shipbuil...