The Visakhapatnam Port Authority has proposed acquiring a 50% equity stake in the under-construction Mulapeta Port in Srikakulam district, Andhra Pradesh. The proposal would create an equal joint venture between the Union government-owned VPA and the Andhra Pradesh Maritime Board, which is overseeing the port’s development.

According to reports published on October 21, 2026, discussions between the State and Central governments are continuing, with the proposed investment amount and land arrangements yet to be finalised.

Salt land allocation emerges as a key issue

Around 3,000 acres of salt land near the port have become a central issue in the negotiations. The land was allotted to the Union Ministry of Ports, Shipping and Waterways at a nominal rate of ₹1 per acre and subsequently transferred to the VPA. The Andhra Pradesh government has renewed its request to obtain the land for the wider development of Mulapeta, including port infrastructure and a proposed Special Economic Zone (SEZ).

One option under consideration is to transfer the land held by the VPA to the port development company and count its value towards the authority’s equity contribution. However, the State government has reportedly raised concerns about this approach because the land was originally allotted to the port authority at a nominal rate. The valuation and equity arrangement remain under discussion.

Mulapeta Port project details

The first phase of Mulapeta Port involves an estimated investment of ₹3,670 crore. The planned facility will have four berths—three for general cargo and one for coal—with an annual cargo-handling capacity of 23.5 million tonnes.

Construction was expected to be completed by May 2027, according to the reported project timeline. The State government must also finalise the port’s operating framework.

Potential impact on Visakhapatnam

The VPA’s proposed participation is linked to plans to shift a substantial portion of bulk cargo, including coal and iron ore, from Visakhapatnam Port to Mulapeta. Moving dust-generating cargo operations away from the city could help reduce pollution and ease pressure on port operations within Visakhapatnam.

Separately, the Andhra Pradesh government has sought the transfer of Central government salt lands across coastal districts for port and industrial development. The extent to which the broader land request overlaps with the land allocated to the VPA at Mulapeta has not been independently established.

The proposed partnership remains under deliberation. The final equity structure, salt land valuation and operating arrangements will determine how the project proceeds.

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