The Adani group has bought Gangavaram port in the state of Andhra Pradesh. With the Andhra Pradesh government selling its stake for peanuts, the Adani company obtained a 100% stake in the port. Adani group purchased 100 percent ownership in Krishnapatnam port, the state’s largest port, last year. By purchasing the ports, Andhra Pradesh is repeating the mistake it made in the KG basin. Currently, the state of Andhra Pradesh receives no money from the KG basin or receives a negligible part of the gas generated in the KG basin.

Andhra Pradesh has a nearly 1,000-kilometre-long coastline, which would aid the state in becoming a logistic hub given its geographical placement as a core part of the east coast. The state’s ports are profitable, indicating that the state’s coastline is a windfall and that the revenue-deficient state of Andhra Pradesh can earn lump sum money in the future. The gangavaram port is critical to national security, and the east naval command is situated there. Permission was granted for the Gangavaram port on the condition that the state government own a part in it to avoid any national security concerns.


Mukesh Ambani

The KG basin is a comparable illustration of how the state loses thousands of crores in revenue each year. Natural gas deposits exist in the Krishna-Godavari region, and in the early 2000s, reliance and several other businesses were granted rights to extract and sell gas. However, the state received no portion of the revenue earned by the central government. The gas is transported to Gujarat, where it is used to generate electricity at a lesser cost. The KG basin contributes a negligible amount of gas to the state of Andhra Pradesh. The state spends thousands of crores on power generation, but with gas from the KG basin, Andhra Pradesh can create electricity at a lower cost like Gujarat.


Gangavaram port, Andhra Pradesh
Gangavarm port

The state has a slew of manufacturing firms, in contrast to Telangana, which is heavily reliant on the information technology sector. The state’s manufacturing sector is reliant on imports and exports. If private firms like Adani control the state’s ports, the Adani group also controls the cost of imports and exports. This indicates that Andhra Pradesh’s industrial growth is entirely dependent on Adani.

Finally, private firms obtaining 100% ownership in a country’s entry and exit points constitutes a grave threat to national security. Such choices would force governments to make concessions on national security. Leases to private corporations subject to tight government oversight are a viable option. When it comes to the state of Andhra Pradesh, it laments the loss of its part in the KG basin and the thousands of crores it is losing. The same mistake is being made again, the state is losing thousands of crores in revenue. The future generation will regret as we are regretting for what happened to the state in the KG basin.


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