The Union government-owned Visakhapatnam Port Authority (VPA) plans to invest Rs 1,500 crore to develop Mulapeta Port in Srikakulam district of Andhra Pradesh, as a mega port. The port is currently under construction by the state government.

VPA has also requested the Centre to transfer about 2,000 acres of adjacent salt land to establish a special economic zone (SEZ) or a port-based industrial hub. “Visakhapatnam Port Authority has formally requested the Andhra Pradesh government for consent to develop the Mulapeta Port as a mega port and has written to the Centre for transferring the salt land,” an official said.

The proposed investment will save the Andhra Pradesh government around Rs 150 crore annually in interest costs on loans taken for port development. VPA also plans to shift pollutant-heavy cargo such as iron ore and coal from Visakhapatnam to Mulapeta to reduce urban pollution.