The state government has only itself to blame for being at the receiving end in the RLNG floating terminal project at Kakinada port. The private operator, Kakinada Sea Ports Limited, could dictate terms to the state for the simple reason that it gained strength from the amendments to the original concession agreement, allowed by the previous government of Y.S. Rajasekhar Reddy.
What is deplorable is that former minister Mopidevi Venkata Ramana (who was handling the infra portfolio when the amendments took place), home minister Sabita Indra Reddy and industries minister J. Geeta Reddy, who all came under the CBI scanner in Jagan’s illegal investments case, recommended these amendments after hectic lobbying by KSPL. The Cabinet sub-committee comprising the trio “studied thoroughly” the complex amendments in just 15 days, a deadline fixed by YSR, and made its recommendations. The other important amendment was removal of minimum guarantee amount to be paid by the operator.
Another interesting factor is that the ‘babu’ duo of Dr Manmohan Singh (then infra secretary and charge sheeted by CBI in Vanpic recently) and Mr K.V. Brahmananda Reddy (who is currently in jail) assisted the sub-committee in mortgaging the state's interests. Sources told this newspaper that KSPL put a condition that the floating terminal would be allowed in the port as per the concession agreement, which prohibits entry of other players or projects in the port without consent of KSPL.
“The original agreement gives exclusive rights to KSPL up to four berths only. The government had the power to develop the remaining port,” a senior official said. But through the amendment, the state gifted rights over the port to KSPL, the official added. Infrastructure officials were of the view that the KSPL wanted to gain control over RLNG terminal, taking advantage of the “exclusivity” clause. The joint venture of the state, AP Gas Distribution Company, GAIL and Gaz De France, is apprehensive of leaving the project to KSPL as not only would the price go up but the state will not have any control over the supply.