Ramayapatnam port put on back burner

​Ongole: The uncertainty over the fate of Ramayapatnam Port in Prakasam district seemingly gives credence to speculations that the government is favouring a similar port at Dugarajapatnam in the neighbouring Nellore district.

The civil society organisations in the district will be protesting in favour of the Ramayapatnam port, since it is expected to boost the development of the district. However, Siddha Raghava Rao, Minister for Transport, Roads and Building, says that State government will construct Ramayapatnam port any cost.

In fact, in the Union Budget session in 2013, the Central government announced Dugarajapatnam Port, ignoring the recommendations of the high-power committee and made Visakapatnam Port Trust (VPT) as its partner for the project.

The project cost was estimated at Rs 17,615 crore and the 1st phase expenditure was estimated to be Rs 6,091 crore. But the then State government expressed its inability to meet the cost of land required for the port project, rehabilitation and resettlement of the victims.

The Central government has indicated that it will be unable to provide the viability gap funding for Rs 3,000 crore to the Visakhapatnam Port Trust to take the project forward.

So in July 2015, the Union Minister for Shipping Nitin Gadkari asked the VPT to prepare a revised feasibility report for the port.

While the VPT is preparing its new report, a team from Rail India Technical and Economic Services also visited the Ramayapatnam port and submitted a report. Both the team members submitted that Ramayapatnam is the best location for construction of port in terms of feasibility.

The agency mentioned the port location within 10km of coast line, with sea depth around 20 metres near the shore, national highway and railway line at just 5 kilometres as the ideal factors. They also said that if the Dugarajapatnam port is constructed, there will be threat to Mada forest, Pulicat lake, Nelapattu bird sanctuary and Sriharikota Space Centre.

The agency further reported that dredging at a cost of Rs 70 to 80 crore is required every year to maintain the sea depth for anchoring ships. The officials also stated that Dugarajapatnam port is economically not viable as the Krishnapatnam Port is just 30 km in north while Kattupalli, Ennur and Chennai ports are just nearby in Southern direction. When compared with the expenditure, the construction of Ramayapatnam is cheaper (Rs 780 crore) than the Dugarajapatnam, they opined.

But taking advantage of the mentioning of Dugarajapatnam Port in the Andhra Pradesh Reorganisation Act, the politicians and industrialists from the Nellore and Chittoor districts started lobbying for the particular port, alleges public organisations like Prakasam District Development Forum.

Chunduri Ranga Rao, president of the PDDF said, “We are fighting against the move of constructing port at Dugarajapatnam from the very beginning. We are already fighting the decision legally at Supreme Court. It is objectionable on part of Central government to take a decision in favour of Dugarajapatnam Port, VPT officials submitted that it is not viable economically and environmentally” he said.

Prakasam district is known for its drought conditions and backwardness but rich in minerals. Almost all of the exporters use Krishnapatnam port or Chennai port to export about 90 per cent of the production from Prakasam district to China, Japan and Middle Eastern countries.

M A Azeem, secretary of the Galaxy Granite Owners Association said “The transportation cost reduces when the blocks are sent to Ramayapatnam than from any other port. This port will help in setting up of new industries, generating thousands of jobs to the locals.” He points out.

However, Siddha Raghava Rao, Minister for Transport, Roads and Building, denies reports of shelving of the port. “The State government is committed to build Ramayapatnam port at any cost. The Chief Minister has plans to develop it as a logistics hub and already sent proposals to the Central government” he assured.