The Hindu Business Line : No smooth sailing for Gangavaram port

THE progress of the Gangavaram minor port, proposed to be built in Visakhapatnam district by the previous Telugu Desam government with private sector participation, has been slow ever since the agreement was signed two years back.

The construction of the port was awarded to a consortium led by Hyderabad-based entrepreneur, Mr D. V. S Raju, and comprising the Dubai Port International and the Andhra Pradesh Government.

The estimated cost is Rs 1,850 crore for the first phase but with the construction likely to get delayed furtherthe estimatemay exceed Rs 2,000 crore. The project has not achieved financial closure yet.

Delay in land acquisition

According to the agreement, the Andhra Pradesh Government had to hand over 1,800 acres to the consortium. So far, only 1,400 acres have been transferred .

The process has been delayed as fishermen from the nearby villages had to be relocated. Moreover, they are not happy with the rehabilitation package offered by the district administration.

Whole of Dibbapalem village, with 1,170 families, has to be relocated to allow port construction. Fishermen were asked to relocate to Appikonda, but they are not content with it.

After negotiations lasting several months, the villagers last week agreed to the proposal and signed a tripartite agreement with the port and State officials.

However, there is still resistance from other villages. The district administration will have to address the problems and hand over the project site to the consortium. It is hoped that the process will be completed in a month or two.

Road connectivity, water and power supply have to be taken care of by the State government. A four-lane road connecting the National Highway-5 has to be laid and water supplied through the Yeleru canal to the port.

The laying of a high-tension powerline by AP Transco is also in progress Land has been acquired for rail connectivity, according to a recent project review.

The port is to be built to handle ships up to 2,50,000 DWT. The new port will have a rich hinterland with coastal Andhra Pradesh, Orissa and Chattisgarh, and there may be no dearth of cargo in spite of its proximity to Visakhapatnam.

According to the revised schedule, the port is expected to become operational by end-2007.

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