Ramayapatnam Port to Remain State-Owned, Says AP Government

The Andhra Pradesh government on Wednesday dismissed allegations that it is privatizing the Ramayapatnam Port , asserting that the state's focus is on accelerating port-led economic growth , attracting private investment and creating employment through a transparent Public-Private Partnership (PPP) model while retaining full government ownership.

Addressing a press conference at the State Secretariat, Roads, Buildings, Infrastructure and Investments Minister B.C. Janardhan Reddy accused the YSR Congress Party (YSRCP) of spreading misinformation by claiming that the government was selling public assets. He clarified that the PPP model does not amount to privatization and is intended to improve operational efficiency without compromising public ownership.

The Minister said the Andhra Pradesh Maritime Board will continue to own the port, land, coastal rights, tariff regulation and all statutory powers. The private partner will be responsible only for operations and maintenance , while the government will retain the authority to monitor performance and cancel the concession if contractual terms are violated. He noted that similar PPP models have been successfully implemented in sectors such as airports, highways and metro rail projects across the country.

Janardhan Reddy said the concession agreement has been designed to maximize long-term revenue for the state. The selected operator will pay an upfront premium of ₹1,500 crore in two instalments along with a revenue-sharing arrangement. Beginning in the 20th year , the government's revenue share will increase by one percentage point every three years , reaching a maximum of 25 percent . The operator will also make guaranteed annual payments ranging from ₹10 crore to ₹150 crore , while the Maritime Board will retain a 12 percent non-dilutable equity stake across all 19 berths .

The Minister alleged that the previous YSRCP government had overstated the project's progress, claiming 95 percent completion when only about 50 percent of the work had been completed by June 2024 . He said the present coalition government has increased overall progress to 80.5 percent and completed the pending land acquisition.

Infrastructure Department Special Chief Secretary M.T. Krishna Babu said the government aims to complete the Ramayapatnam, Machilipatnam and Mulapeta ports by December 2026 . Spread over 2,538.42 acres , the Ramayapatnam project is expected to attract nearly ₹20,000 crore in investments and generate employment for around 25,000 people , strengthening Andhra Pradesh's position as a major maritime and logistics hub on India's eastern coast.