Jagan alleges Ramayapatnam port disinvestment will hurt State finances
YSR Congress Party (YSRCP) president and former Chief Minister Y. S. Jagan Mohan Reddy has alleged that the Andhra Pradesh government’s proposed disinvestment of the
YSR Congress Party (YSRCP) president and former Chief Minister Y. S. Jagan Mohan Reddy has alleged that the Andhra Pradesh government’s proposed disinvestment of the Ramayapatnam Port would result in substantial financial losses to the State and undermine the project’s long-term economic potential. In a post on social media platform X on Sunday, Mr. Jagan questioned the rationale behind the proposed move, asking whether it was “development or scam”, and alleged that the government was attempting to hand over a strategically important public asset to private entities at the State’s expense.
Jagan claimed that during his tenure, the Ramayapatnam, Machilipatnam and Mulapeta ports recorded significant progress, with land acquisition, statutory clearances, financial closure and execution of EPC contracts being completed. He also claimed that substantial physical progress had been achieved on all three projects before June 2024. Highlighting the economic potential of the Ramayapatnam Port, Mr. Jagan said the project had attracted major industrial investments, including Bharat Petroleum Corporation Ltd.’s proposed greenfield refinery and petrochemical complex, Indosol Solar’s integrated manufacturing facility and berths being developed by JSW Steel to support its proposed steel plant in YSR Kadapa district.
These investments, he said, would generate large-scale employment and boost the State’s tax and non-tax revenues. He alleged that despite these prospects, the TDP-led Democratic Alliance (NDA) government was pursuing the port’s disinvestment for political and financial reasons rather than in the State’s interest. Jagan claimed that the State government had invested about ₹4,929 crore in the project, while the proposed private investment involved an upfront payment of only ₹1,500 crore. Such an arrangement, he alleged, would leave the government with debt servicing obligations exceeding ₹3,500 crore, placing a significant burden on the State exchequer.
Questioning the economic rationale behind the proposal, the YSRCP president sought an explanation from the government on how the transaction would benefit Andhra Pradesh. He alleged that the move amounted to sacrificing a valuable public asset.
The BriefWire