Only two bids for Mumbai port project

The two-year delay in the bidding process "" the deadline was deferred 18 times "" seems to have taken its toll. The Mumbai Port Trust today received only two bids for the Rs 1,200-crore offshore container terminal (OCT) project. The port had shortlisted 11 players for the purpose.

Larsen & Toubro (L&T) and Gammon India are the two bidders. MbPT Secretary P Mohana Chandran said, "We have received only two bids. However, we will go ahead with the bidding process if the revenue-sharing quote is attractive."

The reason for the inordinate delay was a security clearance for L&T's former partner, Hutchison Ports Holding (HPH). L&T had to later rope in Philippines port major International Container Terminal Services Inc (ICTSI). However, the security clearance for ICTSI has not yet been received by MbPT from the Indian government.

While L&T is bidding along with ICTSI, Gammon India has tied up with Italian company Dragados SPL and Gammon Infrastructure Project Ltd. Sources said Gammon India had threatened to back out of the race if the deadline was extended further.

"This forced MbPT to invite bids today without a security clearance for ICTSI. The price bid of L&T will be opened only once ICTSI get a go-ahead from the Indian intelligence agencies," they said.

As it is, it is not going to be a cakewalk for either of the two. "If Gammon India or L&T do not match the port's expectations on revenue sharing, it may declare the bidding process invalid. The industry norm is revenue sharing of a minimum 30 per cent with the port," industry sources added.