Andhra Pradesh relaxes rules for Aurobindo Reality, allows it to own two ports

Hyderabad: The Andhra Pradesh government on Wednesday relaxed rules to facilitate Aurobindo Reality own a controlling stake in two ports – the existing Kakinada deep water port and the proposed Kakinada SEZ port.

There was an embargo on acquiring the controlling stake in two ports falling within a distance of 75km. Infrastructure and investment special chief secretary Karikal Valaven issued orders relaxing the conditions.

The state government took legal opinion from former Chief Justice of India VN Khare and advocate general S Sriram before approving Aurobindo’s request for rule relaxation.

The government also allowed GMR group to buy back a 26 per cent stake in the port project, though it sold its entire equity to Aurobindo, to fulfil the condition that the original concessionaire of the port project (GMR in this case) should not leave the project before two years of commencement of port operations.

Aurobindo which initially acquired 51 per cent stake of the GMR group in the proposed KSEZ and greenfield port later managed to take over the remaining 49 per cent held by the KV Rao and associates, who are close to both the Chandrababu Naidu and YS Rajasekhar Reddy governments of the past.

Aurobindo group, close to chief minister Jagan, also made KV Rao sell his stake in the existing deepwater port. Both the legal experts, the former CJI and AG, opined that the government has the power to make changes in the concession agreement when larger public interest is involved.

Defending its decision, the government said the proposed investment by Aurobindo will give a boost to the state’s economy, develop the region and create wider employment opportunities.