AP Govt Cancels Machilipatnam Port Deal

YCP Government issued an order cancelling the Machilipatnam Port Private Limited Concession Agreement. This deal is regarding the construction of the Machilipatnam Port and resuming of 412.57 acres of land handed over on lease. State Government is now planning to claim compensation for the damages from Machilipatnam Port Private Limited.

This development comes as a major blow to Navayuga Engineering Company Limited which was handling this project since the foundation stone was laid in Feb 2019. It happened a week after Navayuga Engineering Company Limited was asked to exit from Polavaram Project.


Machilipatnam Port development project was conceived in 2008. Maytas Infra Pvt Ltd, SREI-SCC and NCC received the contract. However, There was no progress what-so-ever since 11 years. In February 2019, Then CM Chandrababu Naidu allowed the induction of Navayuga Engineering Company Limited as the lead promoter for the project estimated to cost Rs 12,000 crore.

YCP Government cancelled the Machilipatnam Port deal within hours after TDP Chief Chandrababu Naidu accused YS Jaganmohan Reddy of trying to handover it to Telangana. The allegation made by the Opposition Leader was condemned by the Ruling Party.

Machilipatnam Port which is estimated to be spread across 4,800 acres can have a capacity of 150 million tonnes if it's fully operational.