Kothapatnam Fishery Harbour Dist: Prakasham

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1 Rapid Need Assessment & Pre-Feasibility Study Report for Development of Fishery Harbours under Sagarmala Phase-II in Andhra Pradesh Kothapatnam Fishery Harbour Dist: Prakasham DECEMBER 2017

2 PREFACE Department of Fisheries, Government of Andhra Pradesh intended to explore the fishing potential in the coastal areas of Andhra Pradesh with establishment of fishing harbours with a view to providing basic infrastructure for facilitating marine fishing community. This would not only help fishing community but also generate more employment opportunity thereby improving the quality of life of the local population particularly the poor fisher folks. In this regard the Government of Andhra Pradesh decided to establish new marine infrastructure projects comprising five fishery harbour under Sagaramala Phase I. Consequently, Department of Fisheries entrusted M/s WAPCOS Ltd., for consultancy services constituting of conducting Techno- Economic Feasibility studies, Model Studies, Environment Impact Studies, Preparation of Detailed Project Report (DPR), BOQ, D etailed drawings, Structural Drawings, Working Drawings, Detailed Estimate, Rate Analysis etc.., Support Service for EIA, CRZ, PCB Clearances and Project management consultancy services and formulation of project documents for development of new fishing harbours in the coastal districts of Andhra Pradesh. The offers of the WAPCOSLimited, Gurgaon was accepted by the Department of Fisheries, Government of Andhra Pradesh (employer), a letter of award was issued to WAPCOS (Consultant) on February, 2016and an agreement was signed between the Commissioner of Fisheries, Government of Andhra Pradesh and the Sr.General Manager, WAPCOS Ltd. on February 2016.As per the agreement, the consultants are required to provide consultancy services for development of fishery harbour at Juvvaladinne in Nellore district, Vodarevu in Prakasam district. Uppada in East Godavari district, Nizampatnam Stage II in Guntur district and Machilipattnam Stage II in Krishna. In line with agreement, the WAPCOS has submitted Rapid Need Assessment & Pre-Feasibility Study Reports and Detailed Project Reports for all the five site. Further the Government of Andhra Pradesh decided to establish new marine infrastructure projects under Sagaramala Phase II and decided to entrust the i

3 consultancy service for the development of three fishery harbour projects to M/s WAPCOS Ltd., by extending the same terms and condition in the agreement as already entered with WAPCOS, and keeping in view of the decision taken in the SLMC meeting held on As per the agreement the proposed Fish harbours to be developed are as follows: Sl. No Name of Proposed FHs District 1 Budagatlapalem Srikakulam 2 Pudimadaka Visakhapatnam 3 Kothapatnam Prakasham As per terms of the agreement, the consultant has already started their activities from 3 rd week of August 2017 at Budagatlapalem in Srikakulam district, Pudimadaka in Visakhapatnam district and Kothapatnam in Prakasham district. We are much indebted to the Special Chief Secretary, Fisheries Department, Government of Andhra Pradesh, Commissioner of Fisheries, Government of Andhra Pradesh and Director, CICEF for their kind cooperation and guidance. We are also thankful to the other officers of the office of the Commissioned of Fisheries for their support and cooperation for carrying out our activities smoothly. As per the deliverable in our contract document we are submitting two copies of Rapid Need Assessment & Pre-Feasibility Study Report for kind perusal of the Employer. December 2017 WAPCOS Ltd. ii

4 Executive Summary As part of the consultancy services, the consultant carried out Rapid Need Assessment & Pre-Feasibility Studies of 3 marine fisheries locations in Andhra Pradesh through field visits and study during August 2017for the purpose of providing basic inputs for preparation of Pre-Feasibility Report (PFR) and Detailed Project Report (DPR) for establishment of new fishery harbours at Budagatlapalem in Srikakulam district, Pudimadaka in Visakhapatnam district, and Kothapatnam in Prakasham district. The recommendations made in this report under each fishery harbour have considered appropriate based on their merits and demerits, Field data collected during site visit, interviews/consultations had with local fishermen, association, concerned officers of Government of Andhra Pradesh. Brief recommendations on each site are recapitulated below: Sl. No Site Recommendations in Brief 1 Kothapatnam Recommended to develop fishery harbour facilities viz., construction of breakwater, quay (RC bored pile structure), fish handling and auction hall, fishermen gear sheds, net mending sheds, toilet, boat repair/parking yard, concrete surfaces, single/double lane road and WBM surfaces 2 Pudimadaka Recommended to develop fishery harbour facilities such as breakwaters, fish handling and auction hall, fishermen gear sheds, net mending sheds, toilet, boat parking/repair yard, concrete surfaces, single/double lane road and WBM surfaces 3 Budagatlapalem Recommended to develop fishery harbour facilities viz., construction of breakwater, quay ( RC bored pile structure), fish handling and auction hall, fishermen gear sheds, net mending sheds, toilet, boat repair/parking yard, concrete surfaces, single/double lane road and WBM surfaces iii

5 It is emphasised here that the present Rapid Need Assessment & Pre-Feasibility Study at Budagatlapalem in Srikakulam district, Pudimadaka in Visakhapatnam district, and Kothapatnam in Prakasham district, is based on available information and details collected from field visits and secondary data review. As such, this study does not include detailed studies for topographic surveys, bathymetry, subsoil investigations, metrological, etc. iv

6 Table of Contents Page No 1 Introduction Background India Andhra Pradesh Existing fishing infrastructure Marine fish and shrimp production Kothapatnam General Division Need to Develop Fishery Harbour at Kothapatnam Pallipalem in Prakasam District Location Technical Evaluation of Site Fishery Resources Proposed facilities Cost Estimate Economic Evaluation Design Fishing Fleet Annual Fish Landings and Value Economics of Fishing Boat Operation Fishing Vessel Investment Operating Costs Government Revenue Financial Internal Rate of Return List of Drawings Drawing No -01: Conceptual Fishery Harbour Layout Kothapatnam 18 Appendix -1 to 7 27 to 33 1

7 CHAPTER 1 INTRODUCTION 1.1 BACKGROUND INDIA Fishing in India is a major industry in its coastal states, employing over 14 million people. Fish production in India has increased more than tenfold since its independence in According to the Food and Agriculture Organization (FAO) of the United Nations, fish output in India doubled between 1990 and India has 8,118 kilometers of marine coastline, 3,827 fishing villages, and 1,914 traditional fish landing centers. India is a major supplier of fish in the world. In 2006 the country exported over 600,000 metric tonnes of fish, to some 90 countries, earning over $1.8 billion. Shrimps are one of the major varieties exported. The giant tiger prawn (Penaeus monodon) is the dominant species chosen for aquaculture, followed by the Indian white prawn (Fenneropenaeusindicus). Shrimp production from coastal aquaculture during 2004 stood at approximately 120,000 tonnes. Farmed shrimp accounted for about 60% of shrimp exported from the country. Marine and freshwater catch fishing combined with aquaculture fish farming is a rapidly growing industry in India. In 2008 India was the sixth largest producer of marine and freshwater capture fisheries, and the second largest aquaculture farmed fish producer in the world. Fish as food, both from fish farms and catch fisheries, offers India one of the easiest and fastest way to address malnutrition and food security. Despite rapid growth in total fish production, a fish farmers average annual production in India is only 2 tonnes per person, compared to 172 tonnes in Norway, 72 tonnes in Chile, and 6 tonnes per fisherman in China. Higher productivity, knowledge transfer for sustainable fishing, continued growth in fish production with 2

8 increase in fish exports have the potential for increasing the living standards of Indian fishermen. As of 2010, fish harvest distribution was difficult within India because of poor rural road infrastructure, lack of cold storage and absence of organized retail in most parts of the country. The growth rose from only 800,000 tons in FY 1950 to 4.1 million tons in the early 1990s. From 1990 through 2010, Indian fish industry growth has accelerated, reaching a total marine and freshwater fish production to about 8 million metric tons. Special efforts have been made to promote extensive and intensive inland fish farming, modernize coastal fisheries, and encourage deep-sea fishing through joint ventures. These efforts led to a more than fourfold increase in coastal fish production from 520,000 tons in FY 1950 to 3.35 million tons in FY The increase in inland fish production was even more dramatic, increasing almost eightfold from 218,000 tons in FY 1950 to 6.10 million tons in FY In the present Indian scenario, Fisheries is the State subject and the greater responsibility for fishery development lies with the State governments. As such, the coastal State Governments have the prime duty to promote fishery harbour development in their respective States. The coastal State Governments are playing a major role in the overall development of fisheries including initiating action on identifying fishery harbour sites, building and maintaining fishery harbours. The Central Government's role has been that of catalytic agent to boost up the fishery industry of the country by supplementing and complementing the efforts of the State Governments by finance through the Centrally Sponsored Scheme ANDHRA PRADESH Andhra Pradesh lies between 12 41' and N latitude and 77 and 84 40'E longitude, and is bordered by Telangana, Chhattisgarh, and Orissa in the north, the Bay of Bengal in the East, Tamil Nadu to the south and Karnataka to the west 3

9 Andhra Pradesh is strategically located on the South-Eastern coast of India and is the natural gateway to East and South East Asia. The state has a population of around 4.95 crore. Andhra Pradesh has fertile river basins, extensive canal system and conducive agro climatic conditions for fishery promotion. The state has 974 Km of coastline and is one of the largest producers of marine products. The state s coastline is also dotted with numerous major and minor ports and has a long sea faring tradition. Andhra Pradesh (A.P) stands first in total fish and prawn/shrimp production in India since both in terms of production and value. The contribution of fisheries sector is 6.01 % in A. P s. GSDP, whereas the fisheries contribution is about 0.83% of GDP of the nation. The overall fish production has more than doubled in the past one decade from 8.14 lakh tons in to lakh tones in The share of Andhra Pradesh in India s sea food exports has increased from about 20% in to about 40% in During the exports from Andhra Pradesh was Rs. 2,100 crores but by exports have increased to Rs. 12,100 crores. During , the marine exports have been increased to an estimated value of Rs. 16,000 Crores. Nine out of thirteen districts of Andhra Pradesh are along the coastline and the total length of the coast is around 974 Km. The total continental shelf is more than 33,227 Sq.km. The total marine fishermen population in the state is around 6.05 lakh and sea going fishermen are around 1.5 lakh. The total fishing crafts in the state are around 29,195 with around 12,747 motorized crafts, 1771 Mechanized and traditional crafts. There are 4 fishing harbours, 353 fish landing centers and 555 fishing villages. The State had one major port at Visakhapatnam, two intermediate Ports, at Kakinada and Machilipatnam and ten Minor Ports at Bhavanapadu, Kalingapatnam, Bheemunipatnam, Gangavaram, Muthyalammapalem, Rawa, Narsapur, Nazampatnam, Vadarevu and Krishnapatnam with good potential. A.P. though ranked third behind Gujarat and Maharashtra, handles only 9 per cent of the total Minor Port traffic. Kakinada is by far the largest minor port handling 2.77 million MT of traffic in

10 1.2 Existing fishing infrastructure: The state has 4 fishing harbours Visakhapatnam, Kakinada, Nizampatnam andkrishnapatnam. 1 major port at Visakhapatnam and 14 non major ports offering vastopportunity for exporting fish products. There is scope for establishment of new fishing harbours/ fish landing centers andother post-harvest and market infrastructure to give value addition to the produce. Several modern retail and wholesale fish markets have been developed by the NationalFisheries Development Board and State Fisheries department. Availability of 56 Processing Plants with a capacity of 2272 MT/ day, 148 ice plants,45 Freezing Plants with a capacity of 1 million tones/ year and 28 Cold Storage Plantswith a capacity of MT and operating with EU/ ISO 9000 / HACCP standards. Highly motivated fish/shrimp farmers, ample water availability and favourable climatic condition 1.3 Marine fish and shrimp production Marine Fish Production and Marine Shrimp Production can be shown in table 1-1. Table 1-1 Achievement of Marine Fish and Marine Shrimp Production from to Performance Indicators Marine Fish Production Marine Shrimp Production ,46,544 2,51,826 3,26,472 3,51,585 3,60,000 46,606 38,727 52,945 62,764 60,000 Total 2,93,150 2,90,553 3,79,417 4,14,349 4,20,000 5

11 (Target) Marine Shrimp Production in per centage Marine Fish Production in percentage In Marine fish production was 16% and it increased to 23% in , likewise, Marine shrimp production was just 18% during but it increased to 24% in Target of marine fish production during is 24% and Marine shrimp production is 23%. Andhra Pradesh has a total fishing tackle of 10,567. The marine fish production in Andhra Pradesh during the year has been estimated at 4,14,174 tonne, it includes Prawns, Shrimps, other crustaceans and Lobsters. The species-wise marine fish production is summarized in Table 1-2 below. Table 1-2 Species-wise Marine Fish Production by MFVs for the year Sl. No Name of the Species Quantity (tonne) Percentage 1 Shark 8, Skates 2, Rays 7, Eels 5, Cat fishes 15, Wolf herring Oil Sardine 16, Other Sardine 9, Hilsa shad 3, Other shad 2, Anchovies 11, Colia Setipinna Stolephorus

12 Sl. No Name of the Species Quantity (tonne) Percentage 15 Thrissina Thyssa Other clupeds 4, Bombay duck 3, Lizard fishes 4, Bulls eye 1, Threadfin bream 2, Grouper-epinephlusspp 1, Snappers 2, Piqface breams Silver qrunt 1, Other perches 8, Goat fihes 4, Threadfins 3, Croakers 7, Silverbellies 1, Halibut Flounders Sole 2, Big jawed jumber Indiadrift fish Other drift fish Barracudas 1, Silver pomfret 12, Chinese pomfret 3, Black pomfret 16, Trevallies 1, Horse Mackerel 1, Scads Leather jackets 1, Rainbow runner King fish Seriola Other Carangids 2, Ribbon fishes 13, Indian mackerels 27, Other mackerels 9, Narrow Barred spanish mackerel 3, Ino-pacific spanish mackerel 3, Streaked spanish mackerel 2, Wahoo Bullet Tuna 16, Frigate Tuna Little Tuna 2, Longtail Tuna Other neritic Tunas 1, Bigeye Tuna 15,

13 Sl. No Name of the Species Quantity (tonne) Percentage 62 Skipjack tuna 1, Yellowfin tuna 13, Other oceanic tunas Sail fish Sword fish Black marlin Blue marlin Striped marlin Deepseapomfrets Dolphin fishes Flying fishes Fullbeaks and half beaks Lancet fish Sucker fish Sun fish Green eye Black ruff Red baits Sack fish Deep sea sharks 1, Other deep sea fishes 7, Flat heads 14, Gerrids 1, Lantern fish Milk fish 5, Monocle breams Moon fish Mullets 9, Parrot fish 2, Sickle fish Sillagas Spade fishes Squirrel fishes Surgeon fish Rtarpon Terpon Triacantidas Trigger fish Unicorn cod Penaeid-Aristaeomorphaspp 2, Penaeid-Metapenaeusspp 6, Penaeid-Parapenaeopsisspp 3, Penaeid-penaeusspp 6, Penaeid-solenoceraspp 2, Other penaeid shrimps 15, Non-penaeid shrimps 14, Penaeid-Aristeusspp

14 Sl. No Name of the Species Quantity (tonne) Percentage 109 Penaeid-metapenaeusspp 3, Non-penaied-heterocarpusspp 1, Non-penaeid-parapandalusspp 2, Non-penaeid-plesionikaspp 2, Panulirusspp Other lobsters Deep sea lobsters Crabs-charybdisspp 1, Crabs-neptunusspp 2, Crabs-portunusspp 1, Other crabs 3, Stomatopods-orap;osquilla Bivalves Gastropods Cuttle fish 3, Octopus Squids 2, Squids(oceanic) Jelly fish Marine turtles Total 4,14, The Government of Andhra Pradesh is making all out efforts to increase marine fisheries production keeping in view the increasing demand for fish and also the fishery resources potential available off the coast of Andhra Pradesh. The above objective is intended to be achieved by means of fleet expansion and diversification, development of fishery harbours and fish landing centres and development of infrastructure for better marketing facilities. Besides increasing the fish production, the Government is also aiming at seeking reasonable prices for fish catches thereby improving the socio-economic condition of the fisher folk. In order to achieve the foregoing objectives, the Department of Fisheries, implementing welfare programme such as a) fish seed production and distribution b) reservoirs development c) motorization of traditional fishing craft d) group accident insurance scheme e) relief cum savings scheme to the fishermen f) financial assistance to the fishermen g) implementation of marine fishing regulations act etc. The year-wise marine fish production during the period from to is summarized in Table 1-3 below: 9

15 Table 1-3 Marine Fish Production from to Year Fish production ,44, ,46, ,51, ,26, ,51,585 production year In , the fish production was only 17% but it increased to 23% in and again increased to 25% during The main objective of the Pre-feasibility study is to assess the potential of each of fishery centres/fish landing sites with the ability of the existing fish landing facilities and related fishery infrastructure, their immediate requirement of need based facilities and to further explore the possibility of supporting them as fishery growth centres to meet the future demand. 10

16 CHAPTER 2 KOTHAPATNAM FISHERY HARBOUR 2.1 General Proposed Kothapatnam Pallepalem fishery harbour site has been visited during the last week of August 2017, during economic investigations detailed information have been collected regarding fishing vessel type, size, operational schedule, landings etc. and they were analysed after scrutiny. The proposed Kothapatnam Pallepalem fishery harbour site is located at Kothapatnam Mandal in Prakasam district. 2.2 Division Prakasam district is in the Coastal Andhra region of the Indian state of Andhra Pradesh. The headquarters of the district are located at Ongole. It is located on the west coast of Bay of Bengal and is bounded by Guntur district on the north, Kurnool district on the west, Kadapa and Nellore districts on the south. A part of north west region also borders the Mahabubnagar district of Telangana. It is the 3rd largest district in the state with an area of 17,626 km2 and had a population of lakhs as per 2011 census of India. The district was named after the patriot and first Chief Minister of Andhra State Tanguturi Prakasam, also known as Andhra Kesari (Lion of Andhra), who was born in the village of Vinodarayunipalem. It was accordingly renamed as Prakasam District in the year 1972 As of 2011 census of India, the district had a population of 3,397,448 with a density of 193 persons per sq.km. The total population constitute, 17,14,764 males and 16,82,684 females a ratio of 981 females per 1000 males. The total urban population is 664,582 (19.56%). There are 19,04,435 literates with a literacy rate of 63.08%. The district is divided into 3 revenue divisions, namely, Kandukur, Markapur and Ongole. These are sub-divided into 56 mandals which consists of 1081 villages and 13 towns. These 13 towns (or urban settlements) in the district include, 1 municipal corporation, 3 municipalities and 4 nagar panchayats. Ongole is the only municipal corporation, Chirala, Kandukur, Markapur are the 3 municipalities and Addanki, Kanigiri, Chimakurthi, Giddalur are the nagar panchayats. Total population of Kothapatnam mandal is 47,573 consists of male and 23,339 female residing in 11,251 houses according to 2011 Indian Cenusu and it is 18 km 11

17 from Ongole the district and Kothapatnam Pallipalem fishery centree is 2 km from the Mandal headquarters. Kothapatam comes under Ongolr Lok Sabha Constituency. Kothapatnam Mandal is bounded by by Ongole Mandal towards west, Tangutur Mandal towards west, Naguluppalapadu Mandal towards North, Singarayakonda Mandal towards South. Ongole, Kandukur, Chirala, Bapatla are the nearby Cities to Kothapatmam. Kothapatnam consist of 43 Villages and 14 Panchayats. Payakari Khandrika is the smallest Village and Alluru Kothapatnam is the biggest Village. Figure 1: PrakasamDistrict Map During detailed economic investigations, primary and secondary dataa from the fishing boat owners/operators, fishermen co-operative societies, fish and prawn merchants, operators of ice plants etc. have been collected at the project area. In addition to the above, conduct of socio economic study to know the socio economicc conditions of the fisher folk of the proposed project area. Collected the number of mechanised, motorised and non-mechanised fishing vessels operating at the project site and their size, method of fishing, operational schedule, fish and prawn landings per trip and per season, disposal of the catch, fishing vessel investment, annual operating costs, cost of fuel & ice, cost of processing, distribution and marketing of fish and prawn products, 12

18 investment required for construction of ice plant and chilled fish storage, infrastructure facilities available etc. The detailed economic investigation at the project site provided information an actual fleet size operating at the proposed project area and also fishing boats belonging to nearby area which can make use of the proposed project facilities. Fishing Boat details available from various sources have also been verified to arrive actual information on fleet size and their vessel economics at the proposed project area. Based on the field study, statistics furnished by Department of Fisheries and further discussion, design fleet size for the proposed Vodarevu fishery harbour has been arrived and also based on future projection based on the growth of the fishing boats with 50 years forecast and also socio economic conditions of the fisher folk and the capability of active fishermen at the project area. 2.3 Need to Develop Fishery Harbour at Kothapatnam Pallipalem in Prakasam District There is a need develop fishery harbour due to the non-availability of full-fledged fishery harbour infrastructure facilities at the site. Kothapatnam Pallipalem site is situated on the open coast and fishermen are facing difficult without landing and berthing facilities at the site. Mechanised fishing boats of the area in and around the fishery centre operating elsewhere in the State due to non-availability of berthing and landing facilities. Motorised and traditional boats are operating at the site. Once the fishery harbour is developed at Kothapatnam Pallipalem 18 metre and 24 metre mechanised fishing vessels can operate from the site and they can go for 15 trips in a fishing season consisting 12 days per trip. 18 metre can land about 60 tonnes per year at the rate of about 4 tonne per trip comprising 0.6 tonne prawns and 3.4 tonne fish. 9 metre motorised boat goes for 2 days per trip and 90 trips in a fishing season and lands 222 kg per trip and 20 tonne in a fishing season spread over nine months. 24 metre Tuna Long Liner can also go for 15 trips of 12 days duration and land about 6000 kg per trip and 90 tonnes in a season. Development of a fishery harbour is sure to generate more employment opportunities for the local unemployed people and the fishermen community. A large number of workers in the fishery harbour are from the fisher community comprising of boat crew, head-load and ice workers, women fish vendors, fish merchants etc. 13

19 2.4 Location Kothapatnam fishery centre corresponds to latitude 15 o N, longitude 80 o E and is located in Kothapatnam mandal in Ongale revenue division of Prakasam district of Andhra Pradesh. The Kothapatnam fishery centre is about 2km from Kothapatnam village and Ongale is the nearest city, which is about is 17Km from Kothapatnam fishery centre. Location of Kothapatnam fishery centre is shown in satellite imagery at Photo 1. Photo 1: Satellite Imagery of Kothapatnam fishery centre 2.5 Technical Evaluation of Site 1. Kothapatnam fishery centre was visited on 23 rd August 2017 to conduct prefeasibility study of the site for development of fish landing centre. During the visit to the Kothapatnam fishery centre, the Fisheries Department assured that the required land will be made available for the development of fishery harbour. The team, during the inspection of the site, interacted with the concerned officers of Fisheries Department and local Fishermen Societies for locating infrastructure facilities. As of now, there are no infrastructure facilities 14

20 available at the fishery centre and landings and berthing of fishing vessels are carried out on open beach (see photo 2). 2.6 Fishery Resources: In order to decide the design fleet size for the project, the economic investigation team visited the site and held discussions with the officers of the Fisheries Department of Andhra Pradesh and stakeholders regarding the number of fishing vessels operating from Prakasam District and the total number of fishing vessels for which the fishery harbour has to be designed. Further, the Fisheries Department has provided the fishing vessels statistics during the economic investigations. Accordingly, it is suggested after stakeholders meeting that the fishing harbour could be designed for a total fishing fleet of 920 vessels comprising 700 numbers of 9 metre motorissed, 200 numbers of 18 metre mechanised fishing vessels and 20 numbers of 24 metre TLL which was also concurred by the Commisioner of Fisheries, Govt. of AP. The details of the fleet using the harbour such as number of boats, their overall length, annual average landing, duration of each fishing trip etc. are given in Table. The proposed fisheryharbouris required to serve the following fleet. 9 m long FRP boats numbers 18m trawlers numbers 24 m tuna long line - 20 numbers 15

21 Photo 2: IBM Gill Netter berthed on open beach 2.7 Proposed facilities In tune with the demands of the local fishermen the following need based waterfront and shore based facilities at the site area proposed. 1. Breakwaters 2. Reclamation and levelling 3. Quay for landing of fishing vessels (MFVs) 4. Quay for berthing and outfitting of fishing vessels (MFVs) 5. Beach Landing area and parking area for traditional crafts 6. Fish handling and auction hall with sun-shaded fish loading area for MFVs and traditional craft 7. Fishery administrative building 8. Net mending sheds 9. Gear sheds 10. Rest sheds 16

22 11. Restaurant 12. Dormitory 13. Ice plant and cold storage 14. Public toilet blocks 15. Commercial complex 16. Radio communication centre 17. Approach road and internal road network 18. Fresh water supply and distribution system 19. Electrification 20. Drainage & sewerage system 21. Area for civic amenities and greeneries. A conceptual layout showing the above suggested facilities is presented in Drawing No AP-KTPM

23 18

24 Drawing No. 1 - Conceptual layout of Kothapatnam Fishery Harbour 19

25 2.8 Cost Estimate The conceptual stage cost estimate amounting Rs crores for the proposed fishery harbour has been arrived at from estimated quantities and prevailing market rates. Table below gives the indicative costs: Sl. No. Description Unit Quantity Rate (Rs.) Amount (Rs.) 1 Training Wall/Breakwaters i) Northern Breakwater Rm 1, , ,488,000 ii) Southern Breakwater Rm 1, , ,098,960,000 3 Reclamation and leveling i) Reclamation with dredged material upto +2.70m ii) Reclamation with borrowed earth (good earth or gravel) +2.7m to +3.0m Cum 200, ,719,680 Cum 21, ,150,236 4 Quays (Piled Structure) for MFVs Rm , ,400,000 5 Revetment Sqm , ,400 6 Traffic areas and surfacing a) Approach road with embankment Sqm 9, , ,240, b) Asphalt roads within the harbour complex i) Double lane Sqm 25, , ,576,000 ii) Single lane Sqm 5, , ,136,000 b) WBM surface Sqm 4, , ,167,800 i) Vehicle parking area behind the fish Sqm 5, , ,170,300 auction hall c) Concrete surface-fish loading area Sqm , ,688,700 Fish Handling and Auction Hall for MFVs Sqm , ,444,200 Fish Handling and Auction Hall FRP boats Sqm , ,730,900 Fishery Administrative Office Sqm , ,993,800 Fishermen gear sheds ( 1Nos.x161.3 Sqm) Sqm , ,948, Net mending sheds (3Nos.x Sqm) Sqm , ,599, Fishermen rest sheds (2Nos.x Sqm) Sqm , ,698, Boat repair shop ( 2 Nos.x95.34 Sqm) Sqm , ,118, Restaurant Sqm , ,122, Dormitory Sqm , ,856, Security/guard House Sqm , ,046, Compound wall Rm 1, , ,391, Radio Communication Tower Sqm , ,522, Public Toilet (2Nos.x67.73) Sqm , ,201, Commercial Complex Sqm , ,695, Ice Plant (2 Nos.x381.34) Sqm , ,049, Beach landing area Sqm 6, , ,581,600

26 Sl. Rate Amount Description Unit Quantity No. (Rs.) (Rs.) 29 Precast kerb for beach landing area Rm , ,037, Navigational and radio-communication equipment 31 Electric power supply and distribution including electric substation and general lighting 32 Fresh water storage, supply and distribution with ground water sumps, pump house and overhead tank LS 6,00,000 As per detail estimate 84,00,000 As per detail estimate 96,00, Seawater supply and distribution with shallow water tube well, pump house and overhead tank 34 Drainage and sewerage including effluent treatment plant, storm water drains and cross drainage works As per detail estimate 20,00,000 As per detail estimate 60,00, Water purification (RO) Plant (Desalination Plant) LS 80,00, Greeneries and landscaping in front of main gate and at other places LS 12,00, Fire extinguishers, fire hydrants and other equipment LS 12,00, Consultancy charges for preparation of Detailed Project Report including Subsoil investigations, field data collection, model studies and Environmental impact assessment studies 39 Environmental mitigation measures and monitoring LS 12,00,00,000 LS 24,00,000 Sub Total Rs. 254,30,38,581 Add 5% for cost escalation 12,71,51,929 Sub Total Rs. 267,01,90,510 Add 3 % for Contingencies Rs. 8,01,05,715 Add 2 % for Work charged establishment charges Rs. 5,50,05,925 Total Rs. 280,53,02,150 Say Crores Virgo Aqua Consulting Engineers 21

27 2.9 Economic Evaluation Design Fishing Fleet OAL of fishing vessel No. of vessels Average landing per boat (kg) No. of Fishing Trips Duration of each trip (days) Total No. of fishing days Length pf fishing season Landings per boat / season in Tonne 9M Motorised M Trawler M TLL Annual Fish Landings and Value Appendix 2 contains information on the composition of fish landings on a seasonal basis for 9 metre motorised boat, 18 m trawler and 24 m tuna Long Liner. The basis for estimate is essentially the existing effort and expectations in future after the development Fishery Harbour facilities at Pudimadakka. The average annual fish landings and value for a typical 9 m motorised, 18 m Trawler and 24 m TLL is summarized below. The fish landings per boat and the boatside price for prawns and fish have been arrived at after assessing the information from the operators of the above fishing boats during field visit. Table 2-1 Particulars 9 m Motorised 18 m trawler 24 m TLL Prawns Quantity (kg) 1,600 9, Value (Rs.) 2,80,000 24,60,000 - Fish - Quantity (kg) 18,400 51,000 90,000 - Value (Rs.) 10,08,000 49,50,000 84,15,000 Total - Quantity (kg) 20,000 60,000 90,000 - Value (Rs.) 12,88,000 71,10,000 84,15,000 All the 920 fishing boats are already in operation and the project will stabilize in the first year of the 14 year period of the project evaluation. The annual fish landings and value for the total fleet have been estimated based on the information obtained from the project site in respect of individual fishing boat. Based on the information Virgo Aqua Consulting Engineers 22

28 contained in the above Table 2-1 the annual total fish landings and value for the project have been estimated. The details are as follows. Table 2-2 Particulars Quantity (tonne) Value (Rs.in lakhs) Prawns-Class ,400 - Class 2 1,020 3,060 - Class 3 1,420 1,420 Sub-total 2,920 6,880 Fish Class 1 4,290 6,435 - Class 2 5,910 5,910 - Class 3 6,300 3,780 - Class 4 8,380 2,514 Sub-total 24,880 18,639 Total Prawns and Fish 27,800 25, Economics of Fishing Boat Operation Appendix 3 gives a detailed account of the fishing boat operation under six headings, namely, general information, operational schedule, fish landings per trip and per season, fishing vessel investment, vessel operating costs and financial results. The information and the estimates contained in Appendix 3 are based on current activities (January 2017) and some expectations in future. On the basis of the accounting shown in relevant sections of the Appendix, the net earnings as percentage of capital employed are shown below. Table 2-3 Particulars 9 M Motorised 18 M Trawler 24 M TLL Before Depreciation After Depreciation After interest payment After instalment payment Virgo Aqua Consulting Engineers 23

29 2.9.4 Fishing Vessel Investment The scale and timing of the investment required to implement the KothapatnamPallepalem fishery harbour proposal are indicated in Appendix 4. The investment required for implementing proposal at KothapatnamPallepalem has been estimated at Rs. 28,054 lakhs occurs mostly in year 0 i.e., Rs.25, lakhs and an amount of Rs.2, lakhs is shown in Year 1 to cover final bills, retention money etc. As regards fishing boats, the total investment Rs. 18,240 lakhs that have already been invested by the boat owners and all the boats are in operation. Hence, no new investments are required for fishing boats. However for the purpose of evaluation, the investment in fishing boats has been accounted for year 0. There is an investment of Rs.180 lakhs provided for construction of ice plant of 20 tonne with 40 tonne chilled fish storage. The investments are summarized in the Table below. Particulars Table 2-4 Amount (Rs. in lakhs) Fishing Boats - 9 m Motorised 2, m trawler 14, m TLL 2, Sub total 18, Fishery Harbour Cost 28, Shore Establishment Pre development expenditure Total 46, Operating Costs Appendix 5 summarizes the operating costs of fishing boats and the costs arising from the management and maintenance of KothapatnamPallepalem fishery harbour. The details of annual operating costs are summarized in the table below. The costs Virgo Aqua Consulting Engineers 24

30 shown in the following table are applicable for the entire project evaluation period of 14 years i.e. from year Particulars Table 2-5 Amount (Rs. in lakhs) Fishing Boats - 9 m Motorised 8, m trawler 10, m TLL 1, Sub total 19, FH management and maintenance Total operating costs 20, Government Revenue The scope of revenue for the government from the implementation of the project is limited to Port dues, rent charged from the net mending shed, rent paid by the users of the fish auction hall and the land rent payable by those who may lease land for various purposes. If the government decides to control the boatside sale of fish and prawns, then it will be entitled to all the commission chargeable on such sales. The government can set up an orderly fish auction system with proper personnel to run the auctioning, and then it will be able to collect a substantial amount by way of commission. On the basis of the accounting shown in section 5 of Appendix 3, the total amount of Port Dues and commission payable on boat side sales by the owners of the fishing boats will be of the order as shown in the following table. Fishing boats Table 2-6 (Rs. in lakhs) Port Dues Commission on sale of landings Total revenue - 9 m Motorised Virgo Aqua Consulting Engineers 25

31 - 18 m trawler m TLL Total Financial Internal Rate of Return Appendices 1 to 6 explain in detail the various components of the proposal for Kothapatnam Palepalem fishery harbour. Appendix 7 which reconciles the cash inflow and cash outflow provides the basis for calculating the Internal Rate of Return (FIRR) for the project at the level of boatside sales. The FIRR on this project works out to 6-7% with the fishery harbour cost of Rs Crore. Virgo Aqua Consulting Engineers 26

32 Appendix - 1 Fleet Size, Fishermen Employed and Average Annual Landings Item Year Fishing Vessels Operating 9 metre Motorised Craft metre Trawler metre TLL Total Fishermen Employed 9 metre Motorised Craft metre Trawler metre TLL Total Average Annual Landings ( tonne ) 9 metre Motorised Craft Prawns Fish - Class Class Class Sub-total Class Class Class Class Sub-total Total Fish and Prawns metre Trawler Prawns Fish - Class Class Class Sub-total Class Class Virgo Aqua Consulting Engineers 27

33 - Class Class Sub-total Total Fish and Prawns metre Tuna Long Liner Tuna Fish - Class Class Class Class sub total Total Fish Total Fleet Prawns Fish - Class Class Class sub total Class Class Class Class sub total Total Fish and Prawns - Qty. (tonne) Value (Rs. in lakhs) Virgo Aqua Consulting Engineers 28

34 Item Prawns Fish Average Landings and Value per Season for a Typical 9 MetreMotorised Craft (MC), 18 Metre Trawler and 24 Metre Tuna Long Liner Boatside 9 M MC 18 M Trawler 24 M TLL Appendix - 2 Price Quantity Value Quantity Value Quantity Value Rs. / Kg. % ( Kg. ) (Rupees) % ( Kg. ) ( Rupees ) % ( Kg. ) ( Rupees ) Class Class Class Sub-total Class Class Class Class Sub-total Total Prawns and Fish Note % : Catch composition is given in Percentage Virgo Aqua Consulting Engineers 29

35 Appendix - 3 General Information, Operational Schedule and Estimated Annual Financial Statement for a Typical 9 MetreMotorised Craft (MC), 18 Metre Trawler and 24 Metre Tuna Long Liner ( Monetary Values in Rupees ) Sl. Fishing Vessels Item No. 9 Metre OBM 18 Metre 24 Metre 1.00 GENERAL INFORMATION 1.01 Length ( metre) Beam ( metre ) Draught ( metre ) Engine horse power Fish plus ice carrying capacity ( tonne ) Number in crew Fishing method mainly Multi Net Trawling / GN Tuna Long Line 2.00 OPERATIONAL SCHEDULE 2.01 Number of trips per year Days per trip Days at sea per year ( 2.01 x 2.02 ) Days between trips Length of fishing season ( ) LANDINGS PER TRIP AND PER SEASON 3.01 Per trip - Prawns - Landings - Kg Value - Rs Fish - Landings - Kg Value - Rs Total - Landings - Kg Value - Rs Per season - Prawns - Landings - Kg Value - Rs Fish - Landings - Kg Value - Rs Total - Landings - Kg Value - Rs FISHING VESSEL INVESTMENT 4.01 Hull and Fittings Engine and Equipment Sub - total Fishing gear Total Investment FISHING VESSEL OPERATING COSTS Virgo Aqua Consulting Engineers 30

36 5.01 Fuel and lubricating oils Maintenance of vessel & engine (5% of 4.03 ) Maintenance of fishing gear ( 20 % of 4.04 ) Salaries for Crew - explined in Chapter Food Exp.(Rs.600, 3200 & 5000 / trip for 10 M, 15 & 24 M respect.) Ice 0.1, 1.3 & 3 t / trip respect for 10 M, 15 M & 24 M respectively Commission on sales - 3 % of item Port Dues (Rs.500, 4000 & 6000 / trip for 10 M, 15 M & 24 M respect ) Sundries and overheads Sub - total Vessel insurance % of item Provision for gear replacement - 20%of item Sub - total Depreciation - 7 % of item Sub - total Interest - on capital - 12% of item Sub - total Loan instalment payment - 1/ 8 of item Total operating costs FINANCIAL RESULTS 6.01 Surplus before depreciation Surplus after depreciation Surplus after interest payment Surplus after instalment payment RETURN ON INVESTMENT 6.06 Before depreciation - item 6.01 as a % of After depreciation - item 6.02 as a % of After interest payment - item 6.03 as a % of After instalment payment - item 6.04 as a % of Virgo Aqua Consulting Engineers 31

37 Appendix 4 Cash outflow Statement - New Investment (Amount - Rs. in lakhs ) Item Year " 0 " 1 Total Fishing vessels (already invested) 9 metremotorised Craft metre Trawler metre TLL Total Fishery Harbour Fishery harbour - New Investment Shore Establishments Pre Development Expenditure Total Investment 43, , , Appendix 5 Cash outflow Statement Operating Costs for Integrated project Operations (Amount - Rs. in lakhs ) Item Year Fishing vessels 9 metremotorised Craft metre Trawler metre TLL Total Harbour Management and Maintenance Harbour Management Harbour maintenance Total Total operating costs summarized Fishing vessels Harbour management and maintenance Total Virgo Aqua Consulting Engineers 32

38 Cash Inflow Statement Income from Sale of Fish and Prawns (Qty in Tonnes Values - Rs. in lakhs) Appendix - 6 Item 9 Metre 18 Metre 24 Metre Total Qty Value Qty Value Qty Value Qty Value Prawns Fish Total Appendix 7 Reconciliation of Cash Inflow and Cash Outflow Statements (Rs. in lakhs) Year Item Reference " 0 " Cash inflow Income from sale of fish and prawn landings App.6 25, , Less Cash outflow Investment in new fixed assets App.4 43, , Operating costs ( Fishing fleet + Harbour Management and Maintenance) App.5 20, , Balance to be discounted for the calculation of Financial Internal Rate of Return (FIRR) - -43, , , Note : The above statement represents the "Basic statement" for the purpose of financial evaluation The Internal Rate of Return (IRR) on this statement works out to 6-7 %. Virgo Aqua Consulting Engineers 33

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