GoM to decide shifting bulk cargo from Visakhapatnam to Mulapeta Port to cut pollution

A Group of Ministers (GoM) will examine a proposal to gradually move bulk cargo handling from Visakhapatnam Port to the upcoming Mulapeta Port, a move aimed at reducing air pollution and easing congestion in the city.

Investments and Infrastructure Minister B.C. Janardhan Reddy announced on Tuesday that the State government is taking steps to transform Visakhapatnam into a clean, pollution-free and eco-friendly city, in line with Chief Minister N. Chandrababu Naidu's vision of developing it into a global hub for information technology and investments.

The Minister said the government is considering the phased diversion of bulk cargo such as coal, minerals and other dust-generating commodities, currently handled at the Visakhapatnam Port Authority (VPA), to the nearby Mulapeta Port. “These measures will enable commercially viable cargo operations at the Mulapeta Greenfield Port from the day it begins operations,” he said.

Shifting bulk cargo operations to Mulapeta would ease the cargo-handling burden on Visakhapatnam Port, improve vessel turnaround time and reduce the financial burden on shipping companies, according to the Minister. It would also help reduce air pollution in Visakhapatnam, improve the quality of life for residents and promote industrial development in the region, he added.

As part of the proposal, the VPA has suggested acquiring a 49% to 50% equity stake in the Mulapeta Port Special Purpose Vehicle (SPV). It has also sought the allocation of two berths in the first phase and another two in the second phase through the nomination or Right of First Refusal (RoFR) route. Mr. Janardhan Reddy said the VPA had also proposed determining the fair value of the salt pan lands to be transferred to the SPV.

The GoM, already constituted to examine issues relating to the Ramayapatnam Port, comprises Finance Minister Payyavula Keshav, Investments and Infrastructure Minister B.C. Janardhan Reddy and Tourism Minister Kandula Durgesh. It will also examine the proposal for shifting bulk cargo handling from Visakhapatnam Port to Mulapeta Port, review the VPA's proposals, work out the partnership modalities and submit mutually acceptable recommendations to the government.

The Minister said the Special Chief Secretary, Investments and Infrastructure Department, and the Principal Secretary, Finance Department, would assist the GoM on technical and administrative matters to facilitate the finalisation of its recommendations.