A.P. Govt in India Seeks Investors for Port Development Amid Privatization Speculation

Months after the N. Chandrababu Naidu-led Telugu Desam Party (TDP) government returned to power in Andhra Pradesh, they are seeking investors to develop and operate ports in the state for cargo handling. However, this move has caused unrest in the government and port industry, with confusion surrounding whether the expression of interest (EoI) pertains to existing greenfield ports or new ones to be constructed. Speculation is rife that the government may be planning to privatize the ports instead of using government funding and loans, as initiated by the previous administration.

Industry experts and state officials have expressed concern over the ambiguous nature of the EoI, with one official calling it “meaningless.” There is suspicion that the government may be looking to cancel the construction of three under-construction ports and privatize them under a public-private partnership model. The decision to use the term ‘construction’ in the EoI has fueled speculation about the government’s intentions.

The Andhra Pradesh Maritime Board is said to be considering offering the three new ports to a single private company for operation and maintenance on a long-term basis after completion. This proposal aims to enhance the state’s maritime sector and boost economic growth. Despite concerns about potential private sector dominance in port operations, the government sees this initiative as a crucial step towards transforming Andhra Pradesh’s ports into world-class maritime hubs.

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