Deadline for Mumbai, Chennai port bids put off

Security clearance delays Hutchison's entry.

As the government is delaying Hong Kong's business giant Hutchison Whampoa's entry into the Indian ports sector citing security reasons, the mega terminal projects in Mumbai and Chennai worth Rs 1,700 crore have been left high and dry.

In the latest development, the government has extended the bidding deadlines for container terminal project of Mumbai and Chennai from April 15 to May 10.

"This eighth deadline extension for these ports is because of the delay in security clearance of global port major Hutchison Port Holdings (HPH) for its alleged Chinese connections," a senior government official said.

Honk Kong-based HPH is bidding for the offshore container terminal in Mumbai and second container terminal in Chennai in association with engineering and construction major Larsen &Toubro.

HPH, a wholly-owned subsidiary of Hutchison Whampoa Ltd, was earlier debarred from bidding for third container terminal project at Jawaharlal Nehru Port Trust (JNPT) citing the Chinese connections and potential threat to marine installations in Mumbai and Chennai.

When contacted, Shipping Secretary A K Mohapatra declined to comment on the issue adding "government of India will take a final decision on the matter as the issue is security."

Meanwhile, the bidders for the container terminal projects in Mumbai and Chennai ports have threatened that they will backout from the project.

"The projects are delayed by over one year just for security clearance of one bidder. This eighth extension is either to kill the project or to protect some bidders with vested interest," industry sources said.

"If Chinese vessels can call at Indian ports and Chinese personnel can work at these critical sites, what is harm in allowing Hutchison into ports, which is already operating in Indian telecom industry," sources added.

Mumbai Port is developing an Offshore Container Project (OCT) at the cost of Rs 1,200 crore while Chennai Port is constructing a container terminal at the cost of Rs 500 crore.

Earlier, Mumbai Port has shortlisted 11 players including Larsen & Toubro (L&T), HPH, Evergreen, Japanese shipping company Mitsui OSK Lines (MOL), P&O Ports Private Ltd, United Liner Agencies India Private Ltd, Gammon India Ltd, ABG Heavy Industries Ltd, Dubai Ports International, AP Moller Finance SA and Adani Exports Ltd.