The Nellore district administration has cleared the decks for land acquisition to set up the Dugarajapatnam port. However, the location of the port has been changed to Tupilipalem to overcome objections with regard to environmental and forest clearances. The new port would still be called as Dugarajapatnam port.
The district administration, in its report to the state government, said that setting up the port at Tupilipalem would not affect the research work at Shar or damage the ecological balance of Pulicat Lake.
The Centre had accepted the proposal for the new port costing nearly Rs 8,000 crore almost two years ago. The district administration has now proposed to acquire 5,028 acre in and around Tupilipalem village. However, the acquisition would not displace many people as more than 70 per cent of the land is owned by the government.