Government to acquire land for port development

The Indian government has promised to overcome the main hurdle in the way of the new Machilipatnam port complex by acquiring over 4,000 acres of land needed for its construction.

Machilipatnam Port, which is looking to make itself eye-catching to east Asian routes, is planning on a ro-ro facility with discounts to attract the automotive industry. It seems the port has already approached foreign car makers with a deal to undercut Chennai by 10%.

The area was promised a mega port and set the foundations for the new port in April 2008. However, after some shady dealings involving developer Mytas reached the headlines, the government cancelled the agreement.

The port’s chief executive officer, Mr Prabhakar Reddy said that the port in planning to gain the land on a 30 year lease, and added the authority was “ready with finance and machinery to start the construction work but the land acquisition is pending.”

He also made it clear that the impact of the land acquisition would be minimal as good agricultural land and habitats would not be affected.

The government already has 2,000 acres of land occupying a strip close to the shore - which if dredged could be used to handle bulk cargo – but this isn’t sizeable enough or in the best location for the large construction needed to give the port its ro-ro facilities.

Source: Port Strategy