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Vizhinjam Seaport project fails to draw bids again

Three companies who were in the final round of the bidding process backed out from the project; the govt has decided to give four weeks' time again to submit the tenders

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BS Reporter Kochi
Last Updated : Feb 20 2015 | 11:27 PM IST
In a major setback to the Vizhinjam international seaport project, the three companies who were in the final round of the bidding process have backed out from the project. The deadline for submitting tenders for the construction and maintenance of the port ended on Friday.

The documents for submitting the tender were bought by three companies namely, Adani Ports, SR Ports and SREI Infrastructure - a Spanish consortium. However, none of them submitted the tender.

In the light of this, the government has decided to give four weeks' time to submit the tenders. This is fourth time the tender process has failed due to various reasons.

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The works on the state's dream project is supposed to kickstart once the Supreme Court pronounces its verdict after the final hearing in a case pertaining to the project on March 18. The procedures had been stalled several times as cases in the Chennai and Delhi benches of the National Green Tribunal drew no conclusions.

The Union finance minister has assured to chip in with 20 per cent of the total Rs 4,089-crore project that would come to around Rs 800 crore. The runner of the port will have to bear the remaining expense, which would be Rs 2,400 crore. This is the first time that the Centre will allot an amount higher than the investor's capital. Also, Kerala is receiving such an aid from the Centre for a large-scale port project for the first time.

The state government will have to spend an additional Rs 1,200 crore for dredging, reclamation and berth works and Rs 1,500 crore for rail, electricity and water.

Meanwhile, speaking on the development excise and ports minister K Babu said he was shocked to see that nobody turned up for the bidding. He said the government would examine if there was any attempt to derail the project or any conspiracy behind the backing out by the companies.

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First Published: Feb 20 2015 | 8:42 PM IST

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