The Government of Andhra Pradesh in India has given its approval for the detailed project report (DPR) for a new port at Ramayapatnam, Prakasam district.
The new port is expected to boost the capacity of the port to 400 million tonnes from 110 million tonnes by 2024.
The project is expected to incur a total cost of Rs.37.36bn ($493.05m).
Minister of Industries, Commerce, IT & Skill Development Mekapati Goutham Reddy tweeted: “We approved the DPR prepared by RITES towards the development of Ramayapatnam Port and for taking up Phase 1 works with a total project cost of Rs.37.36bn ($493.05m) in 36 months.
“Our government will provide Rs1bn ($13.1m) towards the land acquisition cost for acquiring the required land.”
DPR was prepared by RITES to develop Ramayapatnam port by Ramayapatnam Port Development Corporation.
The port development will be overseen by the Andhra Pradesh Maritime Board, which received approval to raise a debt of Rs.2,079 crore with the support of the government.
The approval in principle for the project was awarded in 2018.
The RITES was given the responsibility to prepare the DPR and carry out studies related to coastal regulation zone (CRZ) and environmental impact assessment (EIA).
Last month, Adani Ports and Special Economic Zone (APSEZ) announced that it has called off its deal to construct the Bhavanapadu Port in Andhra Pradesh.
In August last year, APSEZ planned to acquire up to 70% in Krishnapatnam Port in a deal valued at more than Rs55bn ($770.58m).
APSEZ is part of the Indian conglomerate Adani Group. The corporation purchased the stake from Krishnapatnam Port Company, which manages the deepwater port in Andhra Pradesh.