SBI-led consortium to finance Auro Infra’s ₹3,000-crore Gateway Port in Kakinada SEZ

KAKINADA : A consortium of banks led by the State Bank of India is set to provide a loan of ₹3,000 crore to the Kakinada Gateway Port Private Limited (KGPPL) for building a gateway port at Kona village, which falls under the Kakinada Special Economic Zone on the Kakinada coast.

KGPPL is a subsidiary of Auro Infra Private Limited. This is the third port on the Kakinada coast being built on the 1650-acre area adjacent to KSEZ with an annual handling capacity of 20 million tonnes of cargo.

“A 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. We have already completed the financial closure to be eligible to obtain the loan for the project,” Kakinada Gateway Port Managing Director Rami Reddy Ojili told.

Breakwaters

“Our initial idea was to complete the construction of the entire gateway port with our fund. We have already spent around ₹300 crore on the breakwaters, a key facility, before proceeding with the remaining construction activity,” added Mr. Ram Reddy. The total breakwater extends up to 3.24 km towards south and 0.57 km towards the north.

KG Port authorities said they have obtained all the necessary permissions for dredging activity and construction of the three berths for the first phase of the project.  The port will have a 6-km seafront, 17.5 metres of draft, and will handle the export of coal, granite, fertilizers and aluminium. In the second phase, it has been proposed to build a Liquified Natural Gas terminal at the port.

“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,” added Mr. Ram Reddy. The port would also connect to the road network that is being developed by the Centre under the Bharatmala initiative.

Blue economy

“The port will explore the potential to boost the ‘blue economy’ initiative through maritime trade operations as it is strategically located in the centre of the East Coast, a major destination for many countries for export and import. We are also in talks with major international shipping players to attract them to the Kakinada coast,” said Mr. Ram Reddy.