The state government has approved a 409-day extension for the Mulapeta Greenfield Port project, permitting completion by 30 November 2026 without levying liquidated damages on the contractor. Officials said the extension was justified as delays stemmed from factors beyond the contractor’s control, including adverse weather, cyclones, restrictions on minor minerals, limited site access and delays in handing over encumbrance-free land for external infrastructure.

Phase I of the Mulapeta Port—previously known as Bhavanapadu Port—was sanctioned on 17 August 2021 with a total project cost of Rs 43.62 billion under the landlord model. The contract was awarded to Viswa Samudra Ports (JV), Hyderabad, on 2 August 2022 at a value of Rs 29.50 billion, with the original completion date set for 17 October 2025.

Key project components include construction of breakwaters, dredging works, berthing structures, onshore facilities, and the development of external road and rail links, along with power and water supply infrastructure. As of October 2025, physical progress stood at 60.49 per cent and financial progress at 56.28 per cent.

Following a detailed review, project management consultant TCE Ltd recommended granting the extension, citing unavoidable delays. The EPC contractor has provided an undertaking stating it will not seek additional costs due to the extended timeline, while maintaining its contractual rights.