AP Govt Extends Deadline to Contractor for Rs.5,000 Cr Ramayapatnam Port Works

The proposal for the EoT came from the chief executive of the Andhra Pradesh Maritime Board (APMB), following a list of factors submitted by the Engineering Procurement and Construction (EPC) contractor asking for the extension.

"The government, after careful examination of the matter, hereby accepts the proposal of Chief Executive Officer, APMB and accord 2nd extension of time (EOT) upto 30.12.2026 (Dec 30, 2026) for completion of the project 'Construction of Greenfield Port at Ramayapatnam in Prakasam District on EPC Basis'," said MT Krishna Babu, special chief secretary, Infrastructure & Investment Department in a Government Order (GO) on Friday.

However, Babu said no additional amount will be entertained for the act of issue of EoT. According to the GO, a revised administrative sanction of Rs 4,923 crore was accorded for the construction of the greenfield port at Ramayapatnam on February 16, 2024 while the technical sanction was accorded on November 6, 2020.

The southern state had already accorded an EoT up to April 27, 2026 for completing the first phase works at Ramayapatnam Port without levying liquidity damages, the GO said.

However, the EPC contractor had submitted an application to APMB chief executive officer (FAC) CV Praveen Adhithya for the second EoT, citing several factors "beyond it control."

The reasons cited by the contractor for the second EoT include non-handing over of balance land, over 38 acres, affecting critical components of the project such as the stackyard, internal roads, railway connectivity and utilities.

It also cited reasons such as delay in external infrastructure works, including power transmission and railway connectivity, the GO said.

Unforeseen dredging conditions (hard strata) and operational constraints, change in dredge disposal location, increasing operational time, "local hindrances" and land acquisition issues in Karlapalem and Salipeta villages were some other reasons cited by the contractor.

Moreover, it highlighted that force majeure conditions, including severe cyclones during construction period and geopolitical situation in West Asia affecting fuel supply chains as further reasons for the EoT request.

The contractor's submission was placed before the Tender Evaluation and EPC Committee for their recommendations, the GO said.

"The TE (Tender Evaluation) & EPC Committee has recommended the Second Extension of Time (EoT-02) up to 30-12-2026 (Dec 30, 2026) for project completion due to the reasons," it said.

The TE and EPC Committee took the delay in handing over of land and delay due to the Force Majeure event into consideration, which impacted execution and supply chains, without levying liquidated damages to the EPC Contractor for allowing the extension, the GO added.