AP Govt extends deadline for Mulapeta Port by 409 days, waives penalties

The Andhra Pradesh government has granted a 409-day extension for the Mulapeta Greenfield Port—previously known as Bhavanapadu Port—pushing the project’s completion deadline to 30 November 2026. Notably, the extension comes without any liquidated damages, as the delays were assessed to be beyond the contractor’s control.

The additional time was approved after the project management consultant, TCE Ltd., conducted a detailed review and identified several uncontrollable factors that hindered progress. These included prolonged adverse weather, cyclone-related disruptions, restrictions on the availability of minor minerals, delayed access to work sites, and slower-than-expected handover of encumbrance-free land required for external infrastructure works.

Phase-I of the project was originally sanctioned on 17 August 2021 at a total cost of ₹4,361.91 crore, under the landlord port model. The EPC contract was awarded on 2 August 2022 to Viswa Samudra Ports (JV), Hyderabad, for ₹2,949.70 crore, with the earlier target completion date set for 17 October 2025.

Construction covers major components such as breakwater development, dredging, berthing structures, onshore facilities, connecting road and rail systems, and utility infrastructure for power and water. As of October 2025, the project had achieved 60.49% physical progress and 56.28% financial progress.

While agreeing to the revised timeline, the contractor has submitted an undertaking stating it will not seek additional compensation as a consequence of the extension, though it will maintain its overall contractual rights.