The state government has also decided to reduce the land allotment for the Machilipatnam port from the promised 6000 acres to 2000 acres. This has irritated the local ruling party MLA (now with YSR cong.), Perni Nani to such an extent that he submitted his resignation against the reduction of the land allotment.

This not only shows how these private entrepreneurs who benefited from the YSR government control public representatives, but also the involvement of Public representatives in Real estate deals. There are rumors about nexus between him and TDP MP, Konagalla Narayana in Land dealss in and around machilipatnam port. Narayana was also supposed to resign but hasn't done so till now.

All studies including that of the Planning Commission suggest that not more than 2000 acres, is required for a port, it is absurd on the part of companies to ask for 6000 acres, and more so on the part of Local MLA who seems hell bent on protecting the interest of private entrepreneur rather than public from his constituency. In order to pacify the agitating MLA, CM Kiran Reddy assured that he will look into the matter personally and resolve it ASAP. But the chances are remote.

Machilipatnam port project was originally awarded to the Ramalinga Raju-promoted Maytas and Nagarjuna Construction Company. But after the Satyam scam broke out, Navayuga Engineering stepped in as the lead promoter. Both NCC and Navayuga were given large number of irrigation contracts during the YSR regime and both companies maintain close relations with Jagan.