Srikakulams Mulapeta Port Set to Transform Region with Rs 4,362 Crore Investment
Andhra Pradesh’s Mulapeta region is poised for a significant economic transformation as plans for a mega port gain momentum, contingent on crucial land transfers. The Union government-backed Visakhapatnam Port Authority has expressed keen interest in investing approximately ₹1,500 crore, envisioning the port as a powerful catalyst for industrial growth and regional prosperity. This ambitious project, currently under state government construction, awaits consensus on land acquisition to unlock its full potential for sustainable urban development.
The proposed Mulapeta Port, located in Srikakulam district, is designed to be a multi-purpose facility. Phase 1 alone, with an investment of ₹3,670 crore, will feature four berths, three dedicated to general cargo and one for coal, boasting an impressive annual handling capacity of 23.5 million tonnes. The Visakhapatnam Port Authority has already prepared a Detailed Project Report for Phase 2, underscoring its long-term commitment to developing this strategically important maritime asset. This expansion is crucial for enhancing the state’s logistical capabilities and fostering new economic corridors.
A key element for the port’s comprehensive development is the acquisition of approximately 2,000 acres of adjacent salt land, currently managed by the Salt Commissioner’s Organisation under the Ministry of Commerce and Industry. Recent amendments to Union government guidelines for transferring unused salt lands offer a distinct advantage to central government departments, allowing them access at a token payment of ₹1. In contrast, state governments are required to acquire such land at 50 per cent of the guideline value. This differential pricing has introduced a layer of complexity, as the state government evaluates its options for securing the necessary backup land.
The potential investment by the Visakhapatnam Port Authority in Mulapeta would offer a substantial fiscal advantage to the state government, potentially saving around ₹150 crore annually in interest costs on loans taken for the port’s construction. However, despite the political alignment between the state and central governments, the decision-making process for developing the port under the Visakhapatnam Port Authority and the subsequent land transfer has faced delays. Discussions are ongoing to ensure a unified approach, with the Department for Promotion of Industry and Internal Trade (DPIIT) urging a consensus on which entity will formally apply for the salt land.
The successful realisation of the Mulapeta mega port hinges on securing this substantial backup land, which is vital for establishing a Special Economic Zone or a port-based industrial hub. This development is not merely about increasing cargo capacity; it is about creating a zero net carbon, eco-friendly, and equitable urban future along the Andhra coastline. It promises to generate employment, stimulate ancillary industries, and foster sustainable economic growth, ultimately contributing to a more prosperous and well-connected region within India’s evolving maritime landscape.
