SBI-led Consortium To Provide Rs 3,000 Cr Loan For Kakinada Gateway Port Project In Andhra
In a significant development, a consortium of banks led by the State Bank of India (SBI) has agreed to extend a loan of Rs 3,000 crore to Kakinada Gateway Port (KGPPL) for the construction of a gateway port in Kona village, falling within the Kakinada Special Economic Zone (KSEZ) on the Kakinada coast in Andhra Pradesh.
KGPPL, a subsidiary of Auro Infra, is overseeing the development of the third port on the Kakinada coast. Spanning a vast 1650-acre area adjacent to KSEZ, the port is expected to boast an annual handling capacity of 20 million tonnes of cargo.
Initially intending to fund the entire construction internally, KGPPL has already invested approximately Rs 300 crore in crucial facilities, such as breakwaters, before proceeding with the remaining construction activities. The breakwater itself extends up to 3.24 km towards the south and 0.57 km towards the north.
Kakinada Gateway Port authorities have secured all necessary permissions for dredging activity and the construction of three berths for the first phase of the project. The port is designed to have a 6-km seafront, a draft of 17.5 metres, and will handle the export of coal, granite, fertilisers, and aluminium. The second phase includes plans for a Liquified Natural Gas (LNG) terminal.
According to reports, the consortium led by SBI has given its consent to provide ₹3,000 crore loan for the gateway port that is likely to be commissioned by mid-2025 on the Kakinada coast. SBI is the leading lender. The Kakinada Gateway Port has already completed the financial closure to be eligible to obtain the loan for the project.
Reports also state that Indian Railways has already approved the rail connectivity between Annavaram and the port site, and the revenue authorities have launched the land acquisition exercise for the railway line. The port will also connect to the road network being developed by the Centre under the Bharatmala initiative.
The Kakinada Gateway Port project is a pivotal undertaking that aligns with the nation's infrastructure development goals and holds the promise of economic growth and increased maritime trade activities in the region.
