The Andhra Pradesh government will soon review the concession agreement signed with Maytas-led consortium for development of a deep water port at Machilipatnam as the latter failed to achieve financial closure for the project in the stipulated time.
Replying to a question on development of ports in the state, law and technical education minister Mopidevi Venkata Ramana informed the state Assembly, on behalf of the Chief Minister, today that the Maytas-led consortium was required to achieve financial closure for the Machilipatnam Port project by April this year.
"Because of the crisis in Maytas, a problem has arisen in execution of the project. Of the promised 6000 acres, the state government has already handed over 412 acres of land to the consortium," Venkata Ramana said, in reply to a question raised by Congress MLA G Veera Siva Reddy.
The Machilipatnam Port in Krishna district would be developed at an overall cost of Rs 1,590 crore, with three berths in the first phase. It would initially have a cargo handling capacity of 12 million tonnes.
The minister also said work on construction of ports at Vadarevu in Prakasam district and Nizampatnam in Guntur district was yet to start.
