AP government wants more revenue share at Bhavanapadu port

VISAKHAPATNAM: A committee of empowered group of secretaries of the AP government are likely to hold discussions with the top management of the Adani Group to finalise the revenue share from the proposed development of the Bhavanapadu port in Srikakulam.
While the Adani Group had emerged as the sole bidder for the proposed greenfield port project, government sources said the revenue share offered by the promoter was too low to be given sanction by the state government.The sources said the state government will take a decision on whether to go ahead with the project with Adani Group only after the discussions are held.
“The first level of discussions at the officers level has already been held and the terms of the proposed project meeting have already been finalised. Secretaries from the departments of industries, infrastructure and investment and finance will be part of the committee which will hold discussions with the Adani Group to finalise the revenue share for the port,” said a senior AP government official. However, the progress of the project will depend on the revenue share negotiations, the official said, adding that a suitable date is being finalised to accommodate the different stakeholders of the project from the government as well as the Adani group.
The proposed greenfield port is expected to be spread over an area of around 2,050 acres out of which around 517 acres belongs to the government and the remaining land has to be acquired. The proposed port is expected to handle around 30 million tonnes of cargo with the development of 14 berths. However, sources said the first phase would involve development of five berths and the second phase will have nine berths and the cost is estimated to be around Rs 3,725 crore.
The main cargo expected to be handled at the port includes cashew, granite, jute products, soy meal, iron and steel products. Also, import cargo of LPG, thermal coal, coking coal, lime stone and fertilisers are also likely to form a part of the cargo portfolio of the minor port.