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Kakinada Gateway Port Ltd (KGPL), a subsidiary of Kakinada SEZ Ltd (KSEZ), has signed a concession agreement with the Andhra Pradesh government for development of a greenfield commercial port. The port is to be developed on design, build, finance, operate and transfer (DBFOT) basis at Kona village in East Godavari district of Andhra Pradesh.
KSEZ is a company promoted by GMR Infrastructure Ltd, the flagship company of GMR Group, which is a leading infrastructure developer in the country. The agreement was signed by the Director of Ports, Koya Praveen, and the CEO Kakinada SEZ, Prasanna Challa, in the presence of state Chief Minister Nara Chandrababu Naidu, Ajay Jain, Principal Secretary, Energy, and Nagarjuna Tadury, Vice-President, Ports, Kakinada SEZ.
The ground-breaking ceremony of the Rs 2,123-crore port is expected to be held in December 2018 and the port is projected to generate employment for about 3,000 people, according to a government statement.
The concession has been awarded with a concession fee of 2.7 per cent of revenue share in the first 30 years, 5.4 per cent of revenue share in years 31 to 40 and 10.8 per cent revenue share in years 41 to 50. The port would be developed in an area of approximately 1,811 acres owned by KSEZ.
Kakinada SEZ Ltd had received the letter of award for development of the greenfield commercial port in October 2018. KSEZ has promoted KGPL as its wholly-owned subsidiary and the Special Purpose Vehicle for implementation of the port project.
The Kakinada SEZ industrial park is strategically located on the Vizag-Chennai Industrial Corridor in East Godavari district of Andhra Pradesh, and offers approximately 8,521 acres of industrial land and greenfield commercial port spread in 1,811 acres.
Given the advantages of abundant water, surplus power, assured gas supply by the Andhra Pradesh Gas Distribution Corporation (APGDC) and a developed industrial park with a commercial port in proximity, companies are making a beeline to establish their manufacturing units in Kakinada SEZ.
Kakinada SEZ would be the first industrial park on the eastern coast that can provide piped natural gas to all its industrial units. The SEZ is already operational and has a leading global toy manufacturer Pals Plush, Conneqt Business Solutions (earlier TATA Business Support Solutions) and seafood processing industries
The HPCL-GAIL consortium plans to set up an Ethane Petrochemical Cracker complex in Kakinada SEZ with an investment of Rs 35,000 crore.
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