The Ras al Khaimah (RAK) Investment Authority has expressed concern over the delay in taking up works pertaining to the Vadarevu Nizampatnam Port and Industrial Corridor (Vanpic).
In a letter addressed to Chief Minister N. Kiran Kumar Reddy, the authority said it was “very concerned” about the security of its investment to date and about the ability to generate return on the investment. The RAK Investment Authority said it had already invested Rs. 845 crore in the project and initiated pre-development and land acquisition activities.
The letter, addressed by RAK Investment Authority’s general legal counsel Karam Al Sadeq, comes amid reports that the Government was considering cancellation of the project. Though the authority sought appointment with the Chief Minister twice in March and May, it was denied an audience as Mr. Kiran Reddy was busy in Assembly session in March and by-election campaign in May.
“We had hoped for, and still welcome, an opportunity for our executive management to meet Your Excellency (the Chief Minister) to discuss the status of the Vanpic project and explain our plans for and commitment towards the project,” the letter said.
All the pre-development activities like field surveys, and investigations, technical, marketing and environmental studies had been completed. All statutory clearances including environmental clearance from the Union Environment and Forests Ministry and consent from the AP Pollution Control Board had been obtained for development of the port project besides securing the award of the EPC contract for the construction of the port. The concessionaire, however, had not been able to commence construction as the State Government had not satisfied certain conditions mainly execution of lease in respect of the land at the port and transfer to Vanpic the possession of the land. Taking up implementation of replacement and rehabilitation activities and providing external infrastructure had not been completed. The RAK Investment Authority sought a response from the Chief Minister to the issues raised by it asserting: “We remain at your disposal to meet and discuss the future of investment in and development of the project”, it said.