VPA eyes strategic entry into Mulapeta port project
The Visakhapatnam Port Authority (VPA) has proposed acquiring a 49% equity stake in the upcoming greenfield port at Mulapeta in Srikakulam district, in a move aimed at strengthening its presence along the eastern coast.
A senior official associated with the project said the proposal has been formally communicated to the Andhra Pradesh Maritime Board (APMB), though a response is still awaited.
The Mulapeta port, earlier known as Bhavanapadu Port, is being developed with private sector participation at an estimated cost of ₹4,362 crore in the first phase, with a planned capacity of 23.53 million tonnes.
Srikakulam district, which borders Odisha, has a coastline of 193 km out of Andhra Pradesh’s total 974-km coastline — the second longest in the country after Gujarat — making it strategically important for maritime infrastructure development.
Sources in the State government said financial closure for the project has already been achieved and construction is under way. While indications suggest that the State may not favour VPA’s equity participation, officials said the port authority could be considered for operations and maintenance, given its technical expertise, subject to mutually agreed terms.
VPA handled over 80 million tonnes of cargo in the previous financial year and has set a target of reaching 90 million tonnes in the current fiscal by improving operational efficiency.
Earlier, VPA — then known as Visakhapatnam Port Trust — had explored a joint venture with Rashtriya Ispat Nigam Limited and the State government prior to the development of Gangavaram Port. It had also examined the possibility of developing a satellite port at Mulakedu near Bheemunipatnam, where it owns substantial waterfront land.
The Mulapeta port project, being developed under the landlord model, was launched in April 2023. The first phase, comprising four berths, was initially scheduled for commissioning by October 2025, but the deadline has since been extended to April 2026.