Andhra Pradesh Defends PPP Model for Ports, Rejects Privatisation Allegations

Addressing the media at the Secretariat on Wednesday, (15 July) the Minister clarified that the PPP model is a globally accepted framework designed to improve operational efficiency without transferring ownership of government assets. Reddy noted that the PPP model has been successfully adopted in India’s port sector for the past 25 to 30 years. Of the 119 non-major ports currently operational or under development across the country, nearly 108 ports (around 91%) are being developed or operated under the PPP framework. He further highlighted that states such as Karnataka, Odisha, and Puducherry manage all their non-major ports through PPP arrangements, while Gujarat operates around 90% of its non-major ports under the same model. The Central Government has also extensively adopted PPP for port development.      Explaining the structure of the model, the Minister said the government is implementing projects under the Design, Build, Finance, Operate and Transfer (DBFOT) framework. He stressed that all sovereign rights—including port ownership, land ownership, coastline rights, maritime security, policy-making, tariff regulation, and environmental compliance—remain permanently with the State Government.      According to the Minister, the private concessionaire is responsible only for the operation and maintenance of port facilities under strict government supervision. The State retains full authority to monitor performance, impose penalties for contractual violations, and terminate the 30-year concession agreement if necessary. Refuting allegations surrounding the Ramayapatnam Port project, Reddy accused the previous YSRCP government of spreading misinformation, dismissing its claim of having completed 95% of the project as “completely false.”

The Minister reiterated that the present government remains committed to developing world-class port infrastructure through transparent PPP mechanisms while ensuring complete public ownership and regulatory control over strategic maritime assets.