The Andhra Pradesh cabinet has approved a draft concession agreement for Vadarevu Port in Prakasam district and Nizampatnam Port in Guntur district and port-based industrial corridor, collectively called as the Vanpic project.

Under the agreement around 2,000 acres at Vadarevu port and a similar area in Nizampatnam port will be given of lease basis. The private land cost if acquired will be initially borne by the Concessionaire and later be adjusted against the lease payable to the state government. The concession period is for 33 years extendable later as per the DPR and the performance standards. The project will be implemented by a special purpose vehicle called Vanpic Ports Private Ltd.

The total Budget requirement for the scheme is around Rs.445 crore and the requirement for the current year is around Rs.35 crore as Rs.10 crore provision has already been made in the current year.

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