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GMR Infrastructure Ltd has been chosen the successful bidder under the Swiss Challenge mode to develop a greenfield commercial port in Andhra Pradesh. The proposed port would be located about 30 km north of Kakinada and is proposed to be developed as an all-weather, deep draft, multi-cargo port.
BVN Rao, Business Chairman, Transportation & Urban Infrastructure of GMR Infrastructure Ltd in a statement said, “This is an important milestone that will charter new frontiers of recognition and growth for the entire GMR Group, in India and internationally.”
The port is located at one of the strategic nodes of the Vizag Chennai Industrial Corridor and is expected to benefit from the associated corridor developments. Given the strategic location, the port is expected to become the gateway to the East Coast. Once operational, the port will have an initial capacity of 16 million tonnes.
GMR has offered a revenue share of 2.7 per cent of gross revenue payable to the AP government under the bid for 30 years. The Government has approved provision of external infrastructure such as a road connecting the nearest highway to the port boundary, water supply up to the port boundary and power supply from the nearest substation up to the port boundary, under the AP Ports Policy. It proposes to provide infrastructure support of Rs 200 crore.
“This will augur well for a huge leap forward in the economic development graph of the region, while improving our port’s potential to attract even more prestigious clients, taking the project valuation up many-fold,” he said.
Kakinada Special Investment Region (KSIR) is being developed as a port-based multi-product special investment region. While the port would be spread over about 1,950 acres, the industrial park will come up over 8,500 acres.
This Special Investment Region would house various industries including petrochemicals, food and agro processing, electronics, renewable energy, offering a combination of export-oriented SEZs and domestic market oriented DTAs.
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