Development & Growth

AP’s ₹17,067-Crore Port Pipeline: Spending Crosses ₹9,175 Crore, Progress Remains Uneven

Amaravati, August 18: Andhra Pradesh has four major port projects with a combined estimated cost of ₹17,067.03 crore, of which ₹9,175.64 crore has been spent so far, according to a status report submitted by the State Government to the Legislative Assembly.

The figures show substantial expenditure on three ports being developed under EPC mode, while the ₹2,620-crore Kakinada Gateway Port, being developed under the PPP model, has not reported any expenditure so far in the government’s financial statement.

The details were provided in response to a Question raised by MLAs Somireddy Chandra Mohan Reddy, Gouthu Sireesha and Kagitha Krishnaprasad. The question sought project-wise and district-wise details of ports and fishing harbours, expenditure, land acquisition, environmental and CRZ clearances, construction progress and expected economic benefits.

Ramayapatnam, Machilipatnam lead expenditure

Ramayapatnam Port, with an estimated cost of ₹4,929.39 crore, has received ₹3,183.29 crore through the Andhra Pradesh Maritime Board, all of which has been reported as spent.

Machilipatnam Port, estimated at ₹5,155.73 crore, has received and spent ₹2,763.56 crore.

Mulapeta Port, formerly known as Bhavanapadu, has an estimated cost of ₹4,361.91 crore and has recorded expenditure of ₹3,228.79 crore.

Together, these three EPC-mode projects account for virtually the entire reported port expenditure of ₹9,175.64 crore. The Government has allocated ₹400 crore from the State budget towards the four port projects.

Physical progress tells a mixed story

Financial expenditure does not translate uniformly into physical completion. Ramayapatnam has achieved 45% physical progress, despite 95.53% of its required land having been acquired. Its environmental clearance/CRZ clearance has been received.

Machilipatnam has achieved 59.24% progress, with 100% land acquisition completed and the required clearance received.

Mulapeta has recorded the highest physical progress among the three EPC projects at 76.17%, although only 55.59% of the required 1,524.10 acres has been acquired.

The Kakinada Gateway Port presents a different picture. Only 55.29% of the required 2,015 acres has been acquired, while physical progress stands at 33.04%.

Fishing harbours: ₹1,522.80-crore programme

The State has also listed four fishing harbours under construction — Juvvaladinne, Nizampatnam, Machilipatnam and Uppada — with a combined estimated cost of ₹1,522.80 crore.

The Government’s financial statement reports total expenditure of ₹1,079.99 crore on these four projects.

The physical progress is considerably higher than that of some of the port projects.

Juvvaladinne has reached 97.98%, Nizampatnam 81.61%, Uppada 86.24%, and Machilipatnam fishing harbour 71.96%. Land acquisition for all four has been completed and the required environmental/CRZ clearances have been received.

Government projects major economic impact

The Government expects the port programme to attract ₹20,000 crore to ₹40,000 crore in private industrial investment in areas adjoining the port zones, based on a stated capital ratio of 1:5 to 1:10.

It also estimates that port development could generate two to three indirect jobs in allied sectors for every relevant direct employment opportunity, including warehousing, trucking, hospitality and other services. Additional revenue is expected through tariffs, berth hire charges, customs duties and local GST.

However, the Assembly reply does not provide project-wise employment numbers and export targets. The Government’s response instead sets out broad economic benefits expected from the port and fishing-harbour programme.

The numbers reveal a port infrastructure programme that is already heavily invested but far from uniformly complete.

The government’s own figures therefore present a clear distinction between money spent, land acquired and infrastructure actually completed — three indicators that are moving at different speeds across Andhra Pradesh’s emerging maritime infrastructure network.

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