The minor port proposed at Rajaiahpeta in Nakkapalli mandal, about 90 km from here, for use as a captive port by Anrak Aluminium Limited (AAL) has hit a roadblock.
After serving the land acquisition notices and the subsequent resistance by local fishermen and farmers, authorities seem to have developed cold feet in acquiring the land.
The government served notices for acquisition of 110.87 acres in Chandanada and 102.56 acres in Rajaiahpeta after GO Ms. No. 9 dated August 7, 2010, was issued sanctioning the minor port and its use as a captive jetty to handle import and export cargo by the AAL.
Alumina refinery
The AAL is a special purpose vehicle, which signed a Memorandum of Understanding with the Government of Andhra Pradesh for setting up 1.5 million tonne alumina refinery at Rachapalli in Makavarapalem mandal, about 120 km from here.
Along with 2.5 lakh aluminium smelter and a 90 MW gas-based power plant, the AAI has plans for total investment of Rs.14,000 crore.
The AAL is floated by Ras-Al-Khaiamah and the Penna Group.
The work on alumina refinery is now going on in full swing though the licences granted to the AP Mining Development Corporation to dig bauxite ore in the hilly terrains have been suspended by the Ministry of Environment and Forests.
The minor port was sanctioned following a letter by the AAL to the then Chief Minister K. Rosaiah vide letter AAI-VPT/1/2009-10 dated January 4, 2010, by the Anrak management. The first phase, comprising two berths, would have cost Rs.479 crore.
“We are happy that there is no progress in the construction of the port after we resisted the bid by revenue officials to acquire our lands,” former Rajaiahpeta sarpanch P. Satya Rao told The Hindu .
Hetero Drugs is setting up a pharma SEZ at Narsapuram, just 2 km from Rajaiahpeta.
“The port project might have been put under abeyance following the allegation that YSR Congress president Y.S. Jaganmohan Reddy has business dealings with the Penna Cement's Chief Executive P. Pratap Reddy,” CPI (M) district secretary Ch. Narsinga Rao said.
