Rs.5,000 cr. Floating Storage and Regassification Unit at Kakinada Port, Rs.4,500 crore Petronet LNG terminal at Gangavaram could not take off due to government’s indecisiveness

For all the hue and cry being raised over the injustice meted out to the Seemandhra region by the Centre in the State bifurcation, the State Government’s own track record appears not above board in giving impetus to the major infrastructure projects proposed in the region .

One of the major complaints against the State Government was inordinate delay in clearing files or taking decisions over critical issues related to infrastructure projects that have potential to kick start the economic development.

Some of the major projects such as Rs.5,000 crore Floating Storage and Regassification Unit at Kakinada Deep Water Port, Rs.4,500 crore Petronet LNG terminal project at Gangavaram Port to ensure supply of LNG to the gas based power plants and other industries facing fuel shortage could not take off over government’s indecisiveness, sources said.

Both the terminals if completed would supply 30 MMSCMD of gas and provide additional and relatively cheaper and clean alternate fuels to various sectors, said the then Investment & Infrastructure Minister Ganta Srinivasa Rao.

“The timelines set for these projects have all gone awry because nothing much happened in the last one year as critical decisions were not taken despite series of meetings with joint venture partners, like GDF Suez and Shell company which are collaborating with AP Gas Development Corporation”, sources in the I&I department said.

The major hurdle for the FSRU project at Kakinada was to apportion the equity between the three players, APGDC, GDF Suez and Shell. A committee was constituted with secretaries of Industry, Finance, Law, I&I and Revenue for formulating the modalities but there is not much progress, sources added.

The Petronet LNG terminal project ran into hurdles over the stipulation that it should pay waterfront charges to the Government and not to the concessionaire Gangavaram port (developed in PPP mode) as was agreed before. The issue has not been resolved yet.

The much touted AP Maritime Board Bill 2014 also could not be reintroduced in the Assembly after it lapsed. The Tamil Nadu and Gujarat States had already set up autonomous Maritime Boards that would help in cutting the red tape, an official said.

The major public sector port sanctioned to the State at Dugarajapatnam is still awaiting land allotment of 850 acres in the first phase and the file is pending with the revenue department. The fate of minor port Bhavanapadu, a long pending proposed project in Srikakulam district is awaiting feasibility clearance from the Director of Ports, AP.