From Our Correspondent
Amaravati: Andhra Pradesh Minister for Infrastructure and Investments B.C. Janardhan Reddy has accused the YSR Congress Party (YSRCP) of spreading misinformation over the state’s decision to develop and operate Ramayapatnam Port under the Public-Private Partnership (PPP) model.
Addressing a press conference at the State Secretariat on Wednesday along with Special Chief Secretary for Infrastructure and Investments K. Krishna Babu, the minister clarified that the government was not privatising or selling the port, but only proposing to outsource its operations and maintenance to a private operator under a regulated PPP framework.
Janardhan Reddy said ownership of the port, its land and all strategic assets would continue to remain with the state government. The private partner would function strictly under the terms and conditions laid down by the government, which would also retain the authority to terminate the concession agreement in case of violations.
He pointed out that PPP is a globally accepted model for managing infrastructure projects, including airports, metro rail systems, highways and industrial parks across India.
The minister also accused the previous YSRCP government of selling the state’s 10.4 per cent stake in Gangavaram Port to the Adani Group, contrasting it with the current government’s PPP approach, which retains public ownership.
Government Expects Significant Revenue
According to Janardhan Reddy, awarding the operations and maintenance contract through PPP would generate substantial financial benefits for the state.
The selected private operator will pay an upfront premium of ₹1,500 crore in two instalments. The concessionaire will be chosen through a global tender based on the highest gross revenue share offered to the government.
The concession agreement also provides for:
- An increase of one percentage point in the revenue share every three years after the initial 20-year period.
- A minimum guaranteed annual revenue beginning from the first year.
- Guaranteed payments of ₹10 crore in the first year, increasing to ₹50 crore after five years, ₹100 crore after ten years, and ₹150 crore after 15 years.
The minister said the Andhra Pradesh government would also retain a 12 per cent non-dilutable equity stake in the port authority in return for leasing the land required for the project. He added that the private operator is expected to invest nearly ₹16,000 crore in future expansion, while the state’s equity stake would remain unchanged without requiring any additional government investment.
Port Development Targets
Special Chief Secretary K. Krishna Babu said the government aims to complete Ramayapatnam Port and Mulapeta Port by December this year, while works at Machilipatnam Port are being accelerated with the objective of making it operational by March next year.
He said the completion of the three ports would significantly strengthen Andhra Pradesh’s maritime infrastructure, attract investments and generate employment opportunities across the coastal region.