NEW DELHI: The State government’s decision to develop a chain of minor ports all along the 974-km coastline is aimed at giving a push to port-led activity by involving BOT investors in a big way.
The Cabinet approved the draft policy and an exercise would be launched to finalise the policy on how to remove hurdles in acquisition of land, leasing procedures, giving incentives and implementation of rehabilitation and resettlement, Minister for HRD Ganta Srinivasa Rao told The Hindu on Tuesday.
Mr. Rao, who was Minister for Ports in the government headed by Kiran Kumar Reddy, said the government wanted to make AP a model State in the development of minor ports.
Five industrial clusters on the coast and the establishment of Maritime Board to speed up decision-making for port-led development were also cleared by the Cabinet.
A major port proposed at Dugarajapatnam in Nellore district is under consideration of the Central government as part of Maritime Agenda-2020.
The process to finalise bids for development of a minor port at Bhavanapadu in Srikakulam has hit a roadblock due to land acquisition problem.
Chief Minister N. Chandrababu Naidu during his Japan visit was impressed with the way it developed over 100 small and big ports.
“We have excellent coastline and it has to be tapped to become a role model to give a boost to port-led development,” Mr. Naidu had told an investors’ meet here.
Sources in the industry said various issues relating to port-led development will figure at the Partnership Summit being hosted here by CII in collaboration with Ministry of Commerce sometime in January.
The AP Chamber of Commerce and Industries’ Federation has already engaged Ernst & Young to conduct a study on prospects of augmenting the port sector in the State.
At present, Visakhapatnam Port is the only major port in the State and minor ports have been established at Kakinada, Krishnapatnam and Gangavaram.
“The industry is now hit by economy slowdown. With fall in iron ore exports and coal becoming the only major cargo arriving from abroad, we have to identify various cargoes by improving the connectivity and ensuring faster evacuation of cargo before setting up more Greenfield ports,” a BOT operator of Visakhapatnam Port has said.
