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Sagarmala Finance Corporation is likely to consider a loan of INR 2,000 crore to the Andhra Pradesh Maritime Board for the development of Ramayapatnam and Mulapeta ports. The funding will partly refinance an existing loan from State Bank of India and support ongoing construction. Both ports are part of the state’s plan to expand total cargo handling capacity from about 110 million tonnes to nearly 400 million tonnes. The proposal aligns with the Centre’s Sagarmala programme, which focuses on port-led development and improving logistics efficiency across the country.
Sagarmala Finance Corporation Ltd is expected to take up a proposal to extend a loan of INR 2,000 crore to the Andhra Pradesh Maritime Board to support the development of Ramayapatnam and Mulapeta ports. The proposal is likely to be placed before the company’s board for final consideration after receiving in-principle approval earlier. Advertisement
The funding is planned to be used for two purposes. A part of the loan will refinance an existing borrowing taken from State Bank of India by the state government, while the remaining amount will be deployed towards ongoing construction work at both port sites. The loan is expected to have a tenure of around 15 years, providing long-term funding support for the projects.
Both Ramayapatnam and Mulapeta ports are being developed under the engineering, procurement and construction (EPC) model. Under this structure, the Andhra Pradesh government is responsible for funding the core infrastructure and securing approvals, including land acquisition, environmental clearances and coastal regulation permissions. Work under the EPC scope includes construction of breakwaters, dredging of channels and development of basic port infrastructure.
The two ports are part of a larger plan by the state government to develop four new ports to increase total cargo handling capacity significantly. Andhra Pradesh currently has a capacity of around 110 million tonnes, which is targeted to increase to about 400 million tonnes once all planned ports become operational. In addition to Ramayapatnam and Mulapeta, ports at Machilipatnam and Kakinada SEZ are also being developed under this strategy.
Ramayapatnam is being designed as a deep-water port, which will allow it to handle large vessels and improve cargo movement efficiency. Mulapeta, on the other hand, is planned as a multipurpose port capable of handling bulk cargo, which is expected to support industrial demand in the region. These projects are aimed at improving coastal logistics and reducing dependence on existing ports.
Sagarmala Finance Corporation, which operates as a maritime-focused non-banking financial company, has been playing an increasing role in funding port and logistics infrastructure. It was set up to support projects under the Sagarmala programme and has been expanding its lending portfolio across greenfield and brownfield port developments. The institution has also been exploring plans to scale up its lending capacity through future capital raising.
The broader Sagarmala programme focuses on port-led development, with an emphasis on improving connectivity, reducing logistics costs and increasing the efficiency of cargo movement across the country. With a large share of India’s trade moving through ports, investments in maritime infrastructure remain important for supporting long-term economic activity.
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