Visakhapatnam Port Authority Seeks Up to 50% Stake in Andhra’s Mulapeta Port

The Visakhapatnam Port Authority (VPA) has proposed taking a 49 to 50 per cent equity stake in Mulapeta Port, which the Andhra Pradesh government is developing. The aim is to expand maritime capacity and move bulk cargo handling away from Visakhapatnam, easing congestion at the existing port.

What VPA has proposed

VPA wants to invest equity in the special purpose vehicle (SPV) set up for the port. It has also asked for two berths in Phase I and two more in Phase II. The authority says the arrangement would strengthen Mulapeta’s commercial viability and let VPA absorb growing cargo volumes. It has also sought a fair-value assessment of salt lands proposed to be transferred to the port SPV. The land and equity terms will shape the project’s financial structure and how the central and state governments take part.

State review

The Andhra Pradesh government is examining the proposal through a Group of Ministers (GoM): Finance Minister Payyavula Keshav, Investment Minister BC Janardhan Reddy and Tourism Minister Kandula Durgesh. The panel will review the technical, administrative and financial aspects and work towards mutually acceptable terms. The state Cabinet will then take a final decision.

Bulk cargo shift to ease Vizag

The proposal is closely tied to plans to move bulk cargo, including coal and iron ore, from Visakhapatnam to Mulapeta. Such a shift could ease congestion at the existing port, improve vessel turnaround and cut demurrage costs for shipping lines. It could also reduce pollution from dusty cargo handled near the city. The state expects the relocation to support Mulapeta’s commercial viability from the start of operations and to encourage industry in the region.

About Mulapeta Port

Mulapeta is a greenfield multipurpose port in Srikakulam district, being developed by the state government.

• Phase I: estimated cost of Rs 3,670 crore, with annual capacity of 23.5 million tonnes.
• Berths: four, three for general cargo and one for coal.
• Phase II: VPA has prepared a detailed project report for this expansion.
• Earlier interest: VPA had previously expressed interest in investing about Rs 1,500 crore to develop a larger Mulapeta and in securing adjacent land for a port-based industrial hub.

Wider push on Andhra’s coast

The proposal is part of a wider effort to expand port infrastructure along Andhra Pradesh’s coastline. A larger Mulapeta could help move industrial commodities, improve regional connectivity and attract port-linked industries. Its long-term potential will depend on road and rail links being built on time, land availability and a settled ownership structure. The state’s review will decide how far VPA takes part and how the two governments share development and operating responsibility.