The State government on Tuesday permitted the Andhra Pradesh Maritime Board (APMB) to obtain a loan of ₹3,885 crore at 10.15% interest from the Power Finance Corporation Limited (PFC) for the development of Mulapeta port (previously Bhavanapadu port) in Srikakulam district and to have the government guarantee deed executed by the PFC for the said loan. A G.O. (MS. No.9) to that effect was issued by the Special Chief Secretary (Industries and Commerce) R. Karikal Valaven.
The G.O. said that the government approved the revised DPR prepared by the RITES for the development of Mulapeta port under landlord model and accorded administrative sanction to take up the Phase-I work. The total project cost is ₹4,362 crore and it is targeted to be completed in 30 months. The government is supporting the project with ₹528 crore towards land acquisition, while permitting the APMB to raise loans at 70:30 debt-equity ratio.
