The Visakhapatnam Port Authority (VPA), one of India’s premier major ports managed by the central government, has made a significant move towards expanding its operational footprint. The VPA has proposed to acquire a 49% equity stake in the development of the Mulapeta Port, formerly known as Bhavanapadu Port, located in Srikakulam district, Andhra Pradesh. This step is part of VPA’s broader strategy to enhance its port operations and infrastructure.
A senior official confirmed on Wednesday that the proposal has been communicated to the Andhra Pradesh Maritime Board (APMB). However, there has yet to be an official response to this proposal. The port development, which is a crucial project for the region, is projected to entail an investment of approximately Rs4,362 crore for its initial phase. This phase aims to handle 23.53 million tonnes annually and involves significant private sector participation.
The Srikakulam district, which boasts a coastline of 193 km, forms part of Andhra Pradesh’s extensive 974 km coastline, the second longest in India. The strategic location and scale of the Mulapeta Port project underline its potential to significantly bolster regional maritime infrastructure. Despite the proactive approach by VPA, there are indications that the Andhra Pradesh State Government may not immediately accept the proposal. Government sources suggest that financial closure for the project has already been achieved and construction is underway. The state might consider involving VPA for the port’s operations and maintenance, recognising its extensive expertise in port management, provided the terms are mutually agreeable.
In the previous fiscal year, VPA managed over 80 million tonnes of cargo and has set an ambitious target to increase this to 90 million tonnes in the current fiscal year. Historically, VPA had explored joint ventures and satellite port development projects, including initiatives at Mulakedu near Bheemunipatnam and a prior attempt to collaborate with Rashtriya Ispat Nigam Limited (RINL) for a port venture.
The Mulapeta Port project, which began construction in April 2023, aims to operationalise its first phase with four berths by October 2025. However, the deadline for this initial phase has now been extended to April 2026, reflecting the complexities involved in large-scale port development.
