GMR Group to develop commercial port at Kona

Amaravati: The GMR group has been selected by Andhra Pradesh government for development of commercial port at Kona village of Thondangi mandal in East Godavari district under public-private partnership (PPP) mode.

Adani Ports and SEZ Ltd, Navayuga Engineering Company Ltd and Bothra Shipping Services Pvt Ltd Consortium also competed for the commercial port development project.

Though the Adani Ports has emerged as highest bidder by quoting 1.10% of revenue share, the Kakinada SEZ Limited (GMR group), which is an Original Project Proponent (OPP) has finally agreed to improve their revenue share to 2.70 % of gross revenue. 

The Letter of Award (LoA) will be issued to the selected bidder - Kakinada SEZ Limited - after receipt of the security clearance from Union Ministry of Home Affairs.

Officials of AP Ports said that the port will be developed at a cost of Rs 2,123 crore. An oil cranker unit is expected to be set up at the port. “As the State government has to provide funds to set up the unit under viability gap funding (VGF) basis, the proposal has been in pending,” a senior official of port authority told The Hans India.