The state cabinet, which met here today under the chairmanship of Chief Minister N Chandrababu Naidu, approved the land pooling for the project in Krishna district.
"Those who part with land for the MPIC project will be given 1000 sq yds of residential plot and 250 sq yds of commercial plot per every acre as compensation," Information and Public Relations Minister Palle Raghunatha Reddy said.
"Lands in Amaravati region are fertile where three crops are grown yearly. It's not so in Machilipatnam," Reddy said.
The cabinet approved creation of Machilipatnam Area Development Authority for undertaking the MPIC project which would be spread over 426 sq km, covering 29 villages.
"The villages will not be disturbed, so there will no dislocation of people," the minister said, adding that July 7, 2017, would be the deadline for completion of land pooling.
Krishna district administration had issued a notification for acquiring 30,000 acres of land for the Machilipatnam Port earlier. But the farmers are opposing the acquisition.
"The project is good for the region" was all he said.
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