GMR Group secures ₹2,123 cr port project in AP

The Andhra Pradesh government has selected GMR group for the development of commercial port at Kona village of Thondangi mandal in East Godavari district under public-private partnership (PPP) mode at an investment of ₹2,123 crore. The Letter of Award (LoA) will be issued to the selected bidder - Kakinada SEZ Limited - after receipt of the security clearance from Union Ministry of Home Affairs, AP Ports officials said, adding that Adani Ports and SEZ Ltd, among others also competed for the commercial port development project. Though the Adani Ports has emerged as highest bidder by quoting 1.10% of revenue share, the Kakinada SEZ Limited (GMR group), which is an Original Project Proponent (OPP) has finally agreed to improve their revenue share to 2.70% of gross revenue. An oil cranker unit is expected to be set up at the port and the state government has to provide funds to set up the unit under viability gap funding (VGF) basis.