The deepwater port at Kakinada will become busier, with the construction of the fourth berth nearing completion. It may be ready by March, and after obtaining the necessary clearances, Kakinada Seaports Limited plans to put it to use shortly thereafter.The Andhra Pradesh Government built the port, with three berths, nearly a decade ago and handed it over to a private consortium on a BOT basis. The ADB funded the port construction, with the cost estimated at Rs 325 crore at the time. Subsequently, the progress has been slow and the fourth berth is being built now by Navayuga Engineering.
An offshore vessel complex has also been built at the deepwater port, with one berth reserved for Reliance and the second for others such as Cairn Energy and Gujarat State Petroleum Corporation. Reliance, Cairn Energy and the GSPC are engaged in exploration and exploitation of gas reserves in the Krishna-Godavari basin. Kakinada is the nearest port for these companies.
Reliance has built a captive jetty at Gadimoga village in the vicinity of Kakinada and Yanam, at the onshore gas terminal under construction. Reliance has also been permitted to construct another berth in the Kakinada deepwater port for its use. The Kakinada Seaports Limited has invested Rs 300 crore on building the fourth berth, maintenance dredging and for the construction of the offshore vessel complex.
Another port planned: There is also a proposal to build another port near Kakinada to cater exclusively to the needs of the proposed Kakinada Special Economic Zone. KSEZ sources say that the State Government has approved the plan, and details are being worked out.
However, it is not yet certain whether the ONGC's proposed oil refinery at Kakinada will come up, as certain doubts have been expressed about its economic feasibility, though the State Government is exerting pressure on the ONGC to honour its commitment.
Old port: However, the flurry of activity in the KG basin by oil companies leaves the old anchorage port at Kakinada largely unaffected. The old port is largely dependent on rice exports. The ban on rice exports imposed by the Union Government has come as a shock for the old port, which has been doing exceedingly well for the past two or three years mainly due to rice exports.
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