State going ahead with Bhavanapadu port plan.

Developments with regard to Bhavanapadu Port in Srikakulam and talks for diluting shares in Gangavaram Port in Visakhapatnam have become topics of heated discussion in various circles.

The outright rejection of the Ministry of Shipping’s proposal to develop Bhavanapadu as a joint venture with the Visakhapatnam Port Trust has baffled many. Bhavanapadu is the first port proposed to be built under PPP mode by the State government post-bifurcation.

Infrastructure Corporation of AP is now in the process of calling for Request for Qualification after short-listing 12 firms who responded to Expression of Interest notification.

Highly placed sources told The Hindu that the Ministry of Shipping wrote a letter to the State to explore a joint venture between the AP government and the VPT going by the rich experience of 80-year-old Visakhapatnam Port.

However, the State due to reasons best known to it ignored the recommendation and called for EoI in March. The short-listed firms include Vedanta, Adani, Krishnapatnam and Gangavaram Ports. A consortium comprising Sravan Group, Vizag Profiles and RKEC Project Private Ltd are also in the race.

It is estimated that the Greenfield port has potential to handle 10 million tonne coal in two to three years of operation by building four berths. However, acquisition of land has emerged as a thorny issue.

THE HINDU