In a significant move, the Visakhapatnam Port Authority (VPA), one of India’s top five major ports, is seeking to acquire a 49% equity stake in the newly proposed Mulapeta Port (formerly Bhavanapadu Port) in Srikakulam district as part of its business expansion. A senior official involved in the project confirmed to Press and Digital Media that this proposal has been submitted to the Andhra Pradesh Maritime Board (APMB), though a response regarding the joint venture offer is still pending.
Srikakulam district, which shares a border with Odisha, features a coastline of 193 km out of Andhra Pradesh’s total 974 km—making it the second longest coastline in India, following Gujarat.
The official noted that the VPA has formally expressed its interest in a 49% equity stake in Mulapeta Port. However, government sources suggest that the state may not accept this proposal, as financial closure for the port has already been achieved and construction is currently underway. The state government may consider involving the VPA in the port’s operations and maintenance, acknowledging its expertise, contingent on mutually agreeable terms.
In the last fiscal year, the VPA handled over 80 million tonnes of cargo, aiming to increase this figure to 90 million tonnes in the current fiscal year by enhancing its techno-economic performance. The VPA, previously known as Visakhapatnam Port Trust, had previously attempted to establish a joint venture with the Rashtriya Ispat Nigam Limited (RINL) for a private port development that was later acquired by the Adani Group.
Construction of Mulapeta Port, which is being developed under a landlord model, commenced in April 2023, with plans for the first phase, featuring four berths, to be operational by October 2025. However, this deadline has now been extended to April 2026.
