Andhra Pradesh government has reportedly rejected the claim made by Krishnapatnam Port that the proposed Ramayapatnam port project cannot be set up at an exclusive zone of 100 km radius.
Sunil Sharma, Ports Secretary of Andhra Pradesh is quoted as saying by a leading media that there was no such thing as an exclusive zone of 100 km radius for Krishnapatnam Port. He clarified that the proposal to set up Ramayapatnam port is as per procedure.
But Anil Yendluri, Chief Executive of Krishnapatnam Port Co feels that the proposed facility at Ramayapatnam falls within an exclusive zone of about 100 km granted to the existing port.
However, the concession agreement signed by Krishnapatnam Port Co. and the Andhra Pradesh government for the 30-year contract that can be extended to 50 years contradicts the claim made by the port operating firm, reports suggest.
New ports being developed by coastal states with the help of private investors are typically given an exclusive right to operate without a competing facility coming up within a certain radius to improve their viability. The distance varies from state to state.
It is learnt that the shipping ministry chose the location for Ramayapatnam port project based on state government’s advice. The ministry would soon approach the cabinet seeking its approval to set up the new port.