Centre picks Ramayapatnam in AP as new major port

Sep 25 2012, 03:11 IST
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SummaryThe Centre has picked Ramayapatnam in Andhra Pradesh's Prakasam district as the location for a new major port in the state.

The Centre has picked Ramayapatnam in Andhra Pradesh's Prakasam district as the location for a new major port in the state. The site has been chosen from the three locations shortlisted by the state. The proposed port is expected to cost R8,000 crore initially. The Centre has asked the state government to prepare a feasibility report.

The Centre in June had announced plans to build two new major ports. The second port will come up at Sagar Islands in West Bengal. Sources said the shipping ministry would seek the Cabinet's nod for these two projects early next month. The ports would be set up as special purpose vehicles, which, in turn, will bid out projects to private players.

The estimated cost for the two major ports is about R20,500 crore with an annual cargo-handling capacity of 116 million tonne (MT). The government plans to create an additional capacity of 244 MT in 2012-13 through 42 planned projects. The Sagar Island port will handle 54 MT cargo annually. In its report, Rites, a consultant appointed by the Kolkata Port Trust to study the feasibility of the port, estimated the cost of the project in the first phase to be around R7,851 crore, sources said. The government finalised the port, rejecting two other locations – in Durgarajapuram in Nellore district and Nakkapalli in Visakhapatnam.

The ministries of shipping, finance and the Planning Commission will jointly monitor the progress of the two ports.

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