Minister Janardhan hits back at Jagan over PPP row

Amaravati: Investment and infrastructure minister B C Janardhan Reddy on Monday defended the state government’s decision to develop Ramayapatnam Port under the Public-Private Partnership (PPP) model, dismissing YSRCP president Y S Jagan Mohan Reddy’s allegations of a “scam” and accusing the previous government of double standards on port privatisation.

Responding to Jagan’s criticism on social media, the minister questioned why the YSRCP never opposed the PPP model during its five-year tenure. He also asked why the party remained silent when the government’s stake in Gangavaram Port was sold to a private entity and when two berths at Ramayapatnam were allotted to JSW without transparency.

Rejecting YSRCP’s claim that 95 per cent of Ramayapatnam Port had been completed before the change of government, Janardhan Reddy said only 50 per cent of the work had been completed by June 2024 and that the Alliance government had increased physical progress to 80.5 per cent.

He asserted that PPP does not amount to privatization, noting that 91 per cent of India’s ports operate successfully under the PPP model. He said ports such as Krishnapatnam, Kakinada and Gangavaram have functioned under PPP arrangements for nearly 29 years, contributing to investment, employment and government revenues.

The minister said Andhra Pradesh requires investments of more than Rs 50,000 crore to develop its three greenfield ports in the coming years, making private participation essential.

Earlier, Jagan Mohan Reddy alleged that the TDP-led government was attempting to convert Ramayapatnam Port into a “scam” by offering a port being developed with Rs 4,929 crore of government investment for an upfront payment of only Rs 1,500 crore, while leaving the State to bear debt servicing of over Rs 3,500 crore.

Jagan claimed the YSRCP government had completed land acquisition, statutory approvals, financial closure and EPC contracts for Ramayapatnam, Machilipatnam and Mulapeta ports, besides achieving substantial physical progress before June 2024.

He argued that Ramayapatnam Port is critical for major investments, including BPCL’s proposed Rs 1 lakh crore greenfield refinery and petrochemical complex, Indosol Solar’s giga-scale manufacturing plant, and JSW Steel’s proposed berths to support its integrated steel plant in Kadapa district.

ABOUT THE AUTHOR

The Hans India