Rs. 3,940.42 crores sanctioned

Power Finance corporation has agreed to lend to the government of Andhra Pradesh for the development of greenfield port Machilipatnam.

The government had earlier written a letter to PFC seeking a loan to which PFC replied.

‘With reference to letters regarding financial assistance for development of Machilipatnam Port in Krishna District in the State of Andhra Pradesh, involving total estimated cost of Rs. 5,253.89 crore, we are pleased to advise that we are generally agreeable to advance a loan of Rs. 3,940.42 crore including funding of IDC for this project – Loan no. 89618001. The loan shall be subject to the terms and conditions’ said the letter from PFC addressed to the Managing Director of Machilipatnam Port Development Corporation Ltd.

In order to strengthen its port led economy the state of Andhra Pradesh has undertaken to build three greenfield ports in the state. One among them is the port of Machilipatnam which the government is trying to create its infrastructure.

The Andhra Pradesh Maritime Board has thus been seeking investors and financial help for these ports. PFC has now come forward to lend Machilipatnam port with Rs 3940.42 crores as a loan.

Machilipatnam port is being slated to be built in two phases across 4000 acres of land and  is envisaged to have 4 berths wherein one of the berths is being planned for coal while the other 3 will be multipurpose berths. The port is said to have a draft 14.5 meters.

The Port of Machilipatnam comes in the Krishna District of Andhra Pradesh.

The Chief Minister is said to lay the foundation stone for the port later in Dec. 2022.