Kakinada Gateway Port signs concession agreement for development of commercial port

Kakinada Gateway Port, subsidiary of Kakinada SEZ (KSEZ), has signed the Concession Agreement with the GoAP for development of a green-field commercial port on Design, Build, Finance, Operate and Transfer (DBFOT) basis in Kona Village, East Godavari District, Andhra Pradesh.

The concession has been awarded with a concession fee of 2.7% of revenue share in the first 30 years of COD, 5.4% of revenue share in the years 31 to 40 and 10.8% revenue share in the years 41 to 50. The Port would be developed in an area of approx. 1811 acres owned by KSEZ.

Kakinada SEZ had received the letter of award on 5 October 2018 for development of Greenfield commercial port at Kona Village, Thondangi Mandal, East Godavari District, A.P. KSEZ has promoted KGPL as its wholly owned subsidiary and as the Special Purpose Vehicle for implementation of the Port Project.

 

In the medium term of 1 to 3 years, the Port is expected to generate an employment of ~3000 people and investment of Rs. 2123 crore.

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