The Infrastructure and Investment Department of the Government of Andhra Pradesh has accorded permission to Gangavaram Port to set up an LNG terminal in a joint venture with Petronet. While clearing the project proposal to construct and operate a 5-million tonne per annum (mtpa) LNG terminal – with a provision to expand to 10 MMTPA with Petronet LNG – the government has decided not to allow the port to collect waterfront charges. Gangavaram Port had earlier said it had already entered into a term-sheet agreement with Petronet in May 2012 to establish an LNG terminal, which is likely to be operational by 2016. It wanted to collect waterfront charges at Rs 103.68 per tonne of LNG cargo handled. An order issued stated that the decision to accord permission is based on ongoing consultations.