Published Mar 19, 2026 | 7:12 PM ⚊ Updated Mar 19, 2026 | 7:12 PM
Mulapeta Port. (AndhraPradeshCM/ X)
Synopsis: Describing the decision as a major boost, Chief Minister N. Chandrababu Naidu said it would speed up infrastructure creation and strengthen connectivity, helping Mulapeta emerge as a key logistics and trade hub on the eastern coast. He also credited Prime Minister Narendra Modi for extending support to the initiative.
The Centre’s decision to transfer 385.24 acres of salt land from the Naupada Salt Factory to the Andhra Pradesh Maritime Board (APMB) is expected to significantly accelerate the development of the Mulapeta Port in the backward Srikakulam district.
The approval, granted by the Ministry of Commerce and Industry through the Salt Commissioner’s Organisation, resolves a long-pending issue related to the lack of contiguous land for the project. Officials said the move will enable faster execution of port-linked infrastructure, particularly road connectivity to National Highway-16, and improve overall construction momentum.
Describing the decision as a major boost, Chief Minister N. Chandrababu Naidu said it would speed up infrastructure creation and strengthen connectivity, helping Mulapeta emerge as a key logistics and trade hub on the eastern coast. He also credited Prime Minister Narendra Modi for extending support to the initiative.
According to official sources, the Mulapeta Port project is currently under construction and has crossed the halfway mark, though it remains behind its original schedule.
The Engineering, Procurement and Construction (EPC) contract was awarded to Vishwa Samudra Ports (JV) for ₹2,949.70 crore, with the agreement signed on 2 August, 2022. The project commenced on 18 April, 2023, with an initial completion timeline of 30 months, setting the original deadline as 17 October, 2025. Environmental clearance was received on 31 May, 2023.
However, multiple challenges — including cyclones and adverse weather, restrictions on minor minerals, site access constraints, and delays in land handover — impacted progress.
As of now, the project achieved over 60.49 percent physical progress and over 56.28 percent financial progress. In view of the delays, the state government granted an Extension of Time (EoT) of 409 days, revising the completion deadline to 30 November, 2026, without imposing any liquidated damages. The contractor has undertaken not to claim any additional costs due to this extension.
Key works currently underway include breakwater construction, dredging, berth development, and the creation of onshore infrastructure along with road and rail connectivity systems.
Mulapeta is being developed as a greenfield deep-sea port with strong technical advantages. The port will initially have four berths with a handling capacity of about 15 million tonnes per annum.
It features a natural deep draft of nearly 20 metres, enabling it to handle large vessels of up to 2 lakh DWT (deadweight tonnage), placing it among the more capable ports on the eastern seaboard.
The port is considered strategically important for the industrial development of north coastal Andhra Pradesh. The Srikakulam district, which borders Odisha, has historically lagged in industrialisation.
Located along a busy shipping route in the Bay of Bengal, Mulapeta offers natural advantages as a gateway not only for Andhra Pradesh but also for hinterland regions in Odisha and Chhattisgarh.
The project is expected to attract investments in sectors such as petrochemicals, fertilisers, food processing, and marine exports. It is also likely to reduce logistics costs and improve export competitiveness by providing direct access to global shipping routes.
The Centre has classified Mulapeta as one of the four ports currently under construction in Andhra Pradesh, underlining its importance in the state’s port-led development strategy. It is also expected to ease congestion at existing ports such as Visakhapatnam Port and Kakinada Port.
According to officials, the transfer of land from the Naupada Salt Factory — now leased to APMB for 99 years — is seen as a critical step in strengthening last-mile connectivity. The land will be used to develop road links to NH-16 and facilitate seamless cargo movement.
Officials said the availability of contiguous land parcels will also allow for faster execution of approach infrastructure, land levelling, and supporting logistics facilities. The state government is simultaneously working on expanding rail and road connectivity, along with plans for logistics parks and industrial corridors in the region.
While earlier projections had targeted trial runs by December 2025 and commissioning by mid-2026, these timelines have been pushed forward due to execution delays.
With the revised schedule, construction is now expected to be completed by late 2026. Commercial operations are likely to begin six to nine months thereafter, making 2027 the realistic timeline for full-scale operations.
