The Ministry of Environment and Forests (MoEF) has questioned the rationale behind setting up a new port in Nellore district of Andhra Pradesh when a major port is already located there.
The Shipping Ministry has proposed to set up a major port at Dugarajapatnam in Nellore district, which already has a similar facility at Krishnapatnam, about 100 km away.
Environmental Appraisal Committee (EAC) under MoEF has asked the Shipping Ministry to justify its proposal. The panel has suggested appointment of a sub-committee of experts to visit the port site and submit a report to take a call on environmental clearance.
"The Committee desired that the (Shipping) Ministry may check and provide details of any technical committee set up by it for the site selection of a major port at Dugarajapatnam area...Justification for the need for a port in the area when Krishnapatnam port is in the vicinity," the EAC said, while deferring the proposal to clear the Terms of Reference for the project last month.
The Shipping Ministry is in the process of developing a greenfield port at Dugarajapatnam in the East Coast at a distance of about 90 km north of Ennore port and 700km south of Visakhapatnam port.
Once developed, the port will be the most modern greenfield major port in India with water depth of up to 21 metres, making it capable of handling giant-size vessels.
In the first phase, there will be eight berths -- four for coal and an equal number for containers and general cargo. In phase 2, there will be an addition of 10 berths.
The project is proposed to be implemented through a joint venture (JV) between Visakhapatnam Port Trust (VPT) and Andhra Pradesh government.
Sources in VPT said they are yet to to receive the minutes of EAC meeting.
"The observations made by EAC will have to be answered. RITES (Rail India Technical and Economic Service) has prepared the project report. In consultation with VPT, we will answer all the issues raised by EAC," a source told PTI.
Global consultants Ernst & Young has been appointed to act as financial and transaction advisers for the project, the sources added.
