Santosh Patnaik
Visakhapatnam
TheGroup of Ministers set up to look after the affairs of Ramayapatnam Port has also been entrusted with the responsibility to recommend the proposal of Visakhapatnam Port Authority (VPA) to pick up 49 or 50 per cent equity with the Andhra Pradesh Maritime Board (APMB) in owning the Mulapeta port now under development in Srikakulam district.
The GoM consists of Finance Minister Payyavula Keshav, Minister for Infrastructure and Investment BC Janardhan Reddy and Tourism Minister Kandula Durgest. The government has already issued an RFP notification for a partner to develop and manage the Ramayapatnam port.
The GoM will examine the modalities for transfer of salt lands to the SPV, in the event the Government of India allots the same to VPA at Rs1 per acre. The Union Government owns nearly 5,000 acres of salt lands in the vicinity of the port area, which could be used into a special economic zone and an industrial cluster by VPA. The port owns an Export-Import Park in the city and is in the process of getting transformed into a landlord model as per the directives given by the Ministry of Ports, Shipping and Waterways.
The first phase of the Mulapeta port (erstwhile Bhawanapadu) is under development at a cost of Rs4,361 crore with breakwater, dredging and four berths. APMB has taken a loan of Rs3,885 crore with the government guarantee from Power Finance Corporation at an an interest of 10.15 per cent. The State Government contributed Rs528 crore towards land acquisition and rehabilitation package. For acquisition of 1900 acres of land for Phase-II, Rs440 crore has been earmarked.
"To reduce the financial burden, the State Government is actively considering the VPA proposal. VPA's rich experience in port management will also help the APMB in efficiently running the Mulapeta Port," an official of APMB told Bizz Buzz.
VPA, in turn, wants to own two berths in first phase and another two in next phase so that it could transfer bulk cargoes like iron ore and coal to keep dust pollution in Visakhapatnam bare-minimum. An official connected with the proposal made by VPA on entering into a joint venture with APMB, said the salt lands, if transferred by the Union Government to VPA and allowed for development industrialisation in the backward region, will change the landscape of Srikakulam district bordering South Odisha.
GAD (Cabinet) Department in GORT.No. 1464 issued on Wednesday, stated that the Infrastructure & Investment Department has requested to entrust the matter relating to working out the modalities for the participation of the VPA in the Mulapeta port SPV to the existing GoM constituted for Ramayapatnam port matters.
The Terms of Reference (ToR) for the GoM in respect of Mulapeta Port include examining the proposal for allotment of two berths in the first phase and two berths in the second phase to VPA for handling diverted cargo. It will consider the valuation of equity taking into account
the investments already made, risks assumed and time spent in obtaining statutory approvals and clearances.
The GoM will submit their report/recommendations at an early date to the government. The Special Chief Secretary, Infrastructure & Investment (I&I) Department has been directed to take further necessary action in the matter.