The Hindu Business Line : Krishnapatnam Port phase-I set to start in June

Hyderabad, April 20 The first phase of the Rs 10,000-crore Krishnapatnam Port in Nellore district is all set to begin commercial operations in June, in just 18 months after the work began for the conversion of the existing minor port into a major one.

With the maritime trade witnessing significant growth and Chennai Port getting congested, the port company is targeting to become a hub for containers, coal and petrochemicals.

“The port is going to be the biggest container terminal in the country. It has generated interest among the industry, shipping companies and power firms. There are firm plans for generation of 12,000 MW of power in the vicinity. This includes 1,800 MW unit proposed by the group,” Mr C.V. Rao, Chairman and Managing Director of Navayuga group, told Business Line.

The 5,000-acre port, with a debt-equity ratio of 75:25, would start off with an initial cargo capacity of 20 million tonnes (mt) and would go up to 90 mt four years later.

The Andhra Pradesh Government had awarded the Rs 50-year port project to Krishnapatnam Port Company on a BOST (build-operate-share-transfer) concession.

“This is going to be a shorter and better destination for iron exports from the Bellary-Hospet region.

The transportation to and from the port to the railway lifeline would be ensured,” he said.

A 600-km railway line would be laid, covering a stretch of 114-km to connect Obulavaripalem, giving access to the Chennai-Gooty route of the railway network. “In the short-term, a 26-km stretch would be completed to connect Venkatachalam on the Chennai-Howrah line to coincide the launch of the port in June,” he said.

The port would trigger economic and industrial economic activity in Chittoor, Nellore, Prakasam and Kadapa districts. The company is planning to build a massive housing project abutting the port in order to provide accommodation to scores of people that would get employment in the region.

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