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The Andhra Pradesh government has granted a second extension for completing the INR 4,923 crore Ramayapatnam Greenfield Port project, allowing the EPC contractor to finish the work by December 30, 2026 without imposing liquidated damages. The decision follows requests citing delays in land handover, pending external infrastructure, difficult dredging conditions, force majeure events and global supply chain disruptions. The project, being developed by a joint venture of Navayuga Engineering Company Ltd and Aurobindo Realty Ltd, is a key maritime infrastructure initiative aimed at strengthening the state's port capacity.
The Andhra Pradesh government has granted a second extension of time (EoT) until December 30, 2026, for completing the INR 4,923 crore Ramayapatnam Greenfield Port project in Prakasam district. The extension has been approved without imposing any liquidated damages on the Engineering, Procurement and Construction (EPC) contractor.
The port project was awarded to a joint venture of Navayuga Engineering Company Ltd (NECL) and Aurobindo Realty Ltd (ARIPL). The project was originally scheduled for completion by June 23, 2025. However, the contractor sought additional time after facing several construction and infrastructure-related challenges.
The proposal for the second extension was submitted by the Chief Executive Officer of the Andhra Pradesh Maritime Board (APMB) after examining the request made by the EPC contractor. The state government accepted the proposal and issued a Government Order approving the revised completion deadline.
According to the Government Order issued by MT Krishna Babu, Special Chief Secretary, Infrastructure & Investment Department, the government approved the second extension until December 30, 2026 for the construction of the Greenfield Port at Ramayapatnam on an EPC basis. The order also clarified that the extension would not result in any additional financial claims from the contractor, and no extra payment would be considered because of the extension.
The government had earlier granted an extension until April 27, 2026 for completing the first phase of the project, also without imposing liquidated damages. The latest approval is the second such extension provided for the project.
The EPC contractor cited multiple reasons for seeking additional time. One of the major issues was the delay in handing over the remaining more than 38 acres of land, which affected the development of critical project components, including the stackyard, internal roads, railway connectivity and utility infrastructure.
The contractor also pointed to delays in external infrastructure works, particularly power transmission and railway connectivity, which slowed overall project execution. In addition, it highlighted unforeseen hard rock strata encountered during dredging operations, changes in dredge disposal locations, increased operational time, local disruptions and pending land acquisition in Karlapalem and Salipeta villages.
Force majeure events also contributed to the delay. The contractor informed the authorities that severe cyclones during the construction period disrupted work, while geopolitical tensions in West Asia affected fuel supply chains, impacting project execution and logistics.
The contractor's request was examined by the Tender Evaluation (TE) and EPC Committee before being placed before the government. The committee recommended granting the second extension until December 30, 2026, after taking into account the delay in land handover and the impact of force majeure events on construction activities and supply chains. Based on these findings, the government approved the extension without levying liquidated damages.
The Ramayapatnam Greenfield Port is one of Andhra Pradesh's major maritime infrastructure projects. The government had accorded the project's technical sanction in November 2020, while the revised administrative sanction of INR 4,923 crore was approved in February 2024. Once completed, the port is expected to improve cargo handling capacity, support industrial development and strengthen logistics connectivity along the state's coastline.
Source PTI
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