AP readying loan for equity in 3 new ports

Visakhapatnam: WITH indications that Andhra Pradesh Government is firming up loan towards equity, the stage appears set to kickstart work on building three landlord ports at Ramayapatnam, Machilipatnam and Bhavanapadu.

Sources in the government told Bizz Buzz that the government is in the process of getting a loan of Rs1,500 crore from a SBI-led consortium of banks against securitisation of its revenue from minor ports, first of its kind in the Indian port sector, to launch work on the three greenfield ports as part of efforts to give a fillip to port-led development in the State. Landlord port is one where the government owns the infrastructure of the port and gives on lease the operations to private parties.

AP has a coastline of 974 km in India, the second largest after Gujarat. The land being allotted for the ports will also become the State's equity. The government has decided in-principle to take up first phase work at Bhavanapadu at a cost of Rs 3,700 crore, Ramayapatnam Rs 3,750 crore and Machilipatnam Rs 5,840 crore. Adani Group, which signed a MoU during the TDP Government to develop Bhavanapadu port with an investment of Rs 5,000 crore in the first phase in January, 2018, later backed out. Subsequently, both Gangavaram and Krishnapatnam ports have been acquired by the Adani Ports and Special Economic Zone (APSEZ).

During the erstwhile government efforts were made to build a major port at Dugarajapatnam in Nellore district as a joint venture by Visakhapatnam Port, the State and the Central Government. At the time of bifurcation, the Centre had promised to give financial assistance for construction of a greenfield port in AP as per the AP Bifurcation Act, 2014. Later during the feasibility study, the proposal was found to be unviable. As an alternative, the YSRCP Government decided to construct another port nearby at Ramayapatnam, which is in Prakasam district. Bhavanapadu and Matchilipatnam are in Srikakulam and Krishna districts.

According to AP Maritime Board (APMB) Chairman Kayala Venkata Reddy, the State received a revenue of Rs 280.80 crore from minor ports in the State during the last financial year. While Krishnapatnam is handling a throughput of 55 million tonne, Gangavaram and Kakinada ports put together are handling a cargo of about 60 million tonne An investment of Rs 300 crore has been developed on creation of new ports at Kakinada.