VIJAYAWADA: In line with Chief Minister N Chandrababu Naidu’s vision to transform Visakhapatnam into a clean, pollution-free, and eco-friendly global hub for Information Technology and investments, the Andhra Pradesh government is considering the phased shifting of dusty bulk cargo operations from Visakhapatnam Port to the upcoming Mulapeta Greenfield Port.
Announcing the proposal on Tuesday, Minister for Investments and Infrastructure BC Janardhan Reddy stated that diverting dust-generating bulk commodities — such as coal and minerals — away from the urban limits of Visakhapatnam Port Authority (VPA) will significantly reduce urban air pollution and enhance the quality of life for local residents.
He noted that relocating these operations will also guarantee commercial viability for Mulapeta Port right from its initial day of commissioning.
The Minister further explained that offloading bulk cargo handling from Visakhapatnam Port will relieve operational congestion, optimise vessel turnaround times, and lower demurrage costs for shipping lines, while simultaneously stimulating localised industrial and economic activity across the Mulapeta hinterland.
Under the administrative framework submitted by VPA, the central port authority has proposed acquiring a 49% to 50% equity stake in the Mulapeta Port Special Purpose Vehicle (SPV). Additionally, VPA has requested the allotment of two berths in Phase 1 and two berths in Phase 2 on a nomination or Right of First Refusal (RoFR) basis, along with a fair value assessment for the salt lands being transferred to the SPV.
Minister Janardhan Reddy stated that a Group of Ministers (GoM)—comprising Finance Minister Payyavula Keshav, Investment Minister B.C. Janardhan Reddy, and Tourism Minister Kandula Durgesh—will examine VPA’s proposals to negotiate mutually agreeable terms.
The GoM, which was previously tasked with evaluating issues surrounding the Ramayapatnam Port project, will be assisted by the Special Chief Secretary (Investments & Infrastructure) and the Principal Secretary (Finance) to formulate technical, administrative, and financial recommendations for final cabinet approval.
