The state government approved a 409-day extension for the Mulapeta Greenfield Port project, allowing completion by 30 November 2026 without imposing liquidated damages on the contractor.
The extension was granted following delays beyond the contractor’s control. These included adverse weather, cyclone events, government restrictions on minor minerals, site access issues, and delays in handing over encumbrance-free land for external infrastructure. Phase-I of Mulapeta Port, formerly known as Bhavanapadu Port, was sanctioned on 17 August 2021 with a total project cost of Rs. 4,361.91 crore under the landlord model. The project was awarded to Viswa Samudra Ports (JV), Hyderabad, on August 2, 2022 at a contract value of Rs 2,949.70 crore, with an original completion date of 17 October 2025. Key components include breakwaters, dredging, berthing structures, onshore infrastructure , external roads, rail connectivity, and power and water supply.
As of October 2025, physical progress stood at 60.49 per cent, and financial progress at 56.28 per cent. Following a comprehensive assessment by TCE Ltd., the project management consultant recommended the extension due to unavoidable delays.
The EPC contractor has provided an undertaking stating they will not claim additional costs due to the extension, while retaining their contractual rights.