Lok Sabha Question No. 171 (STARRED), answered on 2024-08-02
Subject: Financial Assistance to PFC
Ministry: PORTS, SHIPPING AND WATERWAYS
Asked by: Shri Balashowry Vallabhaneni

## GOVERNMENT OF INDIA MINISTRY OF PORTS, SHIPPING AND WATERWAYS

## LOK SABHA STARRED QUESTION NO- *171

ANSWERED ON -  02.08.2024

## FINANCIAL ASSISTANCE TO PFC

*171. SHRI BALASHOWRY VALLABHANENI:

Will the Minister of PORTS, SHIPPING AND WATERWAYS be pleased to state: पȅन , पोत पįरवहन और जलमागŊ मंũी

(a) whether the construction of Machilipatnam Port in Andhra Pradesh has started; (b) if so, the details thereof and the time by which it is likely to be completed; (c) the details of financial assistance being given to Power Finance Corporation (PFC) for this port; and (d) whether the above port has been taken under PM Gati Shakti and if not, the reasons

- therefor?

## ANSWER

## MINISTER OF PORTS, SHIPPING AND WATERWAYS (SHRI SARBANANDA SONOWAL)

- (a) to (d).    A statement is laid on the Table of the House.

STATEMENT  REFERRED  TO  IN  REPLY  TO  PARTS  (a)  TO  (d)  OF  LOK  SABHA STARRED QUESTION NO.*171 ANSWERED ON 02 ND  AUGUST 2024 RAISED BY SHRI  BALASHOWRY    VALLABHANENI  REGARDING  'FINANCIAL  ASSISTANCE TO PFC'

(a) to (c) Ports other than Major Ports (Non-Major Ports) are under the administrative  control  of  the  respective  State  Governments.    Machilipatnam  Port  is  a Non- Major Port in the State of Andhra Pradesh. Government of Andhra Pradesh has informed  that  the  construction  works  of  Machilipatnam  Port  in  the  State  of  Andhra Pradesh was started on 21 st April 2023, and is scheduled to be completed by October, 2025.

Projects  having  high  social  impact  but  with  no  return  or  low  Internal  Rate  of Return  are  being  provided  financial  assistance  under  the  Sagarmala  Scheme  of Ministry  of  Ports, Shipping and Waterways. Till date no funds have been provided by Government of India to Machilipatnam Port under Sagarmala Scheme.  However, the Power Finance Corporation(PFC) has sanctioned a term loan of Rs. 3,940.42 crores to the  Machilipatnam  Port  Development  Corporation  Limited  (MPDCL),  a  subsidiary  of Andhra Pradesh Maritime Board (APMB) for the development of the said port.

It  is  also  informed  that  there  are  total  36  projects  at  a  cumulative  cost  of Rs.4,600  Cr  undertaken  by  Visakhapatnam  Port  Authority  &  IWAI  from  their  internal resources in the state of Andhra Pradesh. Out of these 36 projects, 22 projects worth ~Rs. 2530 Cr. are completed and 14 projects worth ~Rs. 2070 Cr. are under various stages  of  implementation  and  development.  A  state  of  art  International  Cruise  cum coastal  Terminal  at  Visakhapatnam  Port  has  been  built  to  cater  to  the  needs  of passengers from around the world.

It  may  also  be  relevant  to  mention  that,  in  the  last  decade,  the  nation's  port capacity  stood  at  ~2,500+  MTPA  in  2022-23  (86%  increase  from  2014-15)  and  the cargo handling capacity at Major Ports has doubled. Under the Sagarmala initiative, two Centre of Excellence in Maritime and Shipbuilding (CEMs) campuses have been set up in  Mumbai  and  Visakhapatnam.  Centre  of  Excellence  in  Maritime  and  Shipbuilding (CEMS) at Visakhapatnam, is the first of its kind in Asia, with 18 laboratories in Indian Maritime  University  Campus.  The  Institute  has  equipped  over  10,000  students  with employable engineering and technical skills.

(d) Government of  Andhra  Pradesh  has  achieved  financial  closure  for  the  project with loan from Power Finance Corporation, therefore the project was not taken up under PM Gati Shakti.

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