AP State Gov relocates Machilipatnam Port

Hyderabad: A consortium of companies headed by Maytas Infra, has been chosen to develop the Machilipatnam port at Gilakaladinne, as against the earlier location of Gogileru. NCC, SREI, SEC — other partners have agreed to the suggestion for a new location, provided the State extends support to meet additional project costs.

The move to locate the port at Gilkaladinne was okayed by the Chief Minister, Dr Y.S. Rajasekhara Reddy, on Monday even though this would mean additional cost of about Rs 330 crore when compared to the earlier Gogileru site.

Addressing a news conference here, the Chief Minister said the decision to relocate the port was taken, as people in and around the existing Machilipatnam port were keen that it is located close by. They felt that unless this was done, the port city, developed during the British regime, would decay further, causing hardship to people dependent on local trade and commerce, Dr Reddy pointed out.

Narrating the sequence of events leading to the decision, Dr Reddy said that the project developers were awarded a letter of intent in 2001. Based on feasibility studies and after choosing a few sites, it was decided to locate the port at Gogileru.

However, people living in Machilipatnam and elected representatives across party lines were keen that the new port be located near the existing one. As per estimates, if it is relocated at Gilakaladinne, it could potentially involve additional investment of about Rs 330 crore. The State Government, in the interest of people, stated that they would meet the additional expenditure.

When the project was conceived in 2001, its cost was estimated at about Rs 1,250 crore. This could go up significantly now due to cost escalation and also additional investments will be required for the new site. The Chief Minister said that an independent agency will be appointed to assess and verify the additional costs involved. Later on, a Committee of Senior Officers would work out the modalities of concluding the concession agreement with the developer.

Asked about the prospect of the proposed special economic zone near Machilipatnam, Dr Reddy said that was a separate issue and was being addressed.

Answering queries, the Chief Minister said, 'The State had amongst the highest number of SEZs coming up in the country. Unlike some of the States that faced rehabilitation issues, Andhra Pradesh does not have any concerns. This is because we have developed a new policy that provides adequate compensation to those displaced by these SEZs.'