A large requirement of capacity creation in ports needs huge investments for which the Government of Andhra Pradesh have formulated on open policy to encourage the private sector in Port development. The private sector is invited to design, build, finance, operate and manage the ports based on their technical feasibility, projections for traffic and planned investments.

• --> The investors would be free to fix their own tariff for various port services without determent to the development of the port in shorter/longer periods.
  
• --> Concessionaire will be declared as the Port conservator as per Indian Ports Act-1908.
  
• --> The investors would also be given complete freedom to follow their own personnel and employment policy without being governed by the rules and practices in other Indian Ports.
  
• --> Government will assist in acquisition of land on payment by the investor. Wherever port land is available, it will be provided to the parties at the rates prescribed by the Government.
  
• --> Land required for those industries which need to be located close to a port to take advantage of bulk handling of their materials/products, can be acquired on the basis of feasibility report made by the investor. If the investor wants to own the land and lease out to industries, such land can be acquired on market price under Land Acquisition Act.
  
• --> Government will give all possible help in obtaining fresh water and power supply to investors.
  
• --> In regard to other incentives for port based industries that are going to be setup, whatever incentives that are available as on date as per the Government policy will be extended.
  
• --> Concession fee of almost 2.5 % of gross income per annum is payable to Govt in case of Greenfield Ports
  
• --> Wherever feasible Captive Jetties/Captive Ports will be permitted
  
• --> Suo-moto proposals for development of any Port project or Port facility will be entertained subject to treatment of the proposals under Swiss challenge.
  
• --> Exemptions on Sales tax, seigniorage charges, Stamp duty etc will be considered on case to case basis depending on unviability of the project.