The Andhra Pradesh government is developing world-class ports through the Public-Private Partnership (PPP) model and is neither privatising ports nor selling government assets, Roads, Buildings, Infrastructure and Investments Minister B.C. Janardhan Reddy said.
Addressing a press conference at the Secretariat in Velagapudi, the minister rejected allegations made by the YSR Congress over the Ramayapatnam Port project, accusing the opposition of spreading misinformation for political gain. He said construction of the Ramayapatnam, Machilipatnam and Mulapeta ports was progressing rapidly, with all three projects targeted for completion by December 2026.
Janardhan Reddy said the PPP model, followed globally for infrastructure development, allows private firms to operate and maintain projects under strict contractual conditions while ownership of ports, land, coastal rights, tariffs, environmental regulations and policy decisions remains with the government. He said the model had been successfully implemented in airports, national highways, metro rail projects and major ports across the country, resulting in improved infrastructure, operational efficiency, private investment and employment generation.
Explaining the financial structure of the Ramayapatnam Port project, he said the selected private operator would pay an upfront premium of Rs 1,500 crore in two instalments besides sharing revenue with the government, with the revenue share increasing by one percentage point every three years from the 20th year, up to a maximum of 25%. He said the operator would also pay a Minimum Guaranteed Revenue, beginning at Rs 10 crore annually and increasing to Rs 150 crore over time. The Andhra Pradesh Maritime Board would retain a permanent 12% non-dilutable equity stake in all 19 berths, while the land would remain government property and only be leased.
