Amaravati, July 15: The Andhra Pradesh government announced on Wednesday that it has initiated a fully transparent bidding process under the Public-Private Partnership (PPP) model for the operation and maintenance of Ramayapatnam Port. The government aims to attract global companies and ensure rapid development of the port.
In response to criticism from the YSR Congress Party regarding this decision by the coalition government, the state issued a statement defending its choice. The government emphasized that the bidding process is entirely transparent, with clear terms set for revenue sharing, Minimum Guaranteed Revenue (MGR), equity participation, advance payments, and capacity enhancement of the port.
Through the Andhra Pradesh Maritime Board (APMB), the government is developing Ramayapatnam Port as a major all-weather multi-cargo port under the Design, Build, Finance, Operate, and Transfer (DBFOT) model in Prakasam district. The government stated that the use of the PPP model for port operations and maintenance is not new. It has been successfully implemented at major and minor ports across the country for the past 25-30 years. The central government is also adopting this model for several ports operated under the Ministry of Ports, Shipping, and Waterways.
According to the government, there are 119 non-major ports in India that are either operational or under development. Of these, 108 ports (approximately 91 percent) are being developed and operated under the PPP model. All operational non-major ports in states like Andhra Pradesh, Karnataka, Odisha, and Puducherry are functioning under the PPP model, while around 90 percent of non-major ports in Gujarat also follow this system.
The government highlighted that the current coalition has expedited the construction of the Ramayapatnam, Machilipatnam, and Mulapeta port projects. Physical progress has reached 80.50 percent in Ramayapatnam, 58.91 percent in Machilipatnam, and 76.02 percent in Mulapeta. The government aims to complete the construction of all three ports by December 2026.
Ramayapatnam Port will be developed in four phases (A, B, C, and D) over an area of 2,538.42 acres. The entire project will feature a total of 19 berths, including a dedicated liquid berth for BPCL. The annual cargo capacity for Phase A is projected to be 34.04 million tons, which will increase to 138.54 million tons per year upon project completion.
The approved cost for Phase A is ₹4,929.39 crore, with 80.50 percent of the construction work and 73.95 percent of financial progress already completed. The remaining phases will be developed by the selected PPP operator. The concession period for the project is set at 30 years, with a possibility of extension for an additional 20 years if needed.
According to the government, this port will be capable of handling bulk, container, liquid, and gas cargo. A key requirement for the PPP operator is to develop at least one fully mechanized container berth in the first phase, which must involve participation from a global container operator or binding agreements with international shipping companies.
Additionally, the selected operator must deposit an advance premium of ₹1,500 crore in two phases. They will also need to share revenue with the government, which will increase over time. If the revenue share falls below the Minimum Guaranteed Revenue, the operator must fulfill the stipulated MGR payment.
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