Mumbai, Chennai ports asked to extend terminal project bids

In a move that could further delay the Rs 1,700 crore container terminal projects at the Mumbai and Chennai ports, the government has asked the ports to extend bidding deadlines for the projects.

This follows the delay in security clearance of global port major Hutchison Port Holdings (HPH) owing to its alleged Chinese connections.

Honk Kong-based HPH is bidding for the offshore container terminal in Mumbai and the 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 the third container terminal project at Jawaharlal Nehru Port Trust (JNPT) citing the Chinese connections and potential threat to marine installations in Mumbai and Chennai.

P Mohana Chandran, secretary, Mumbai Port Trust (MbPT), confirmed the deadline extension to April 15 from March 15, but declined to divulge further details.

Industry sources pointed out that the Rs 1,200 crore offshore box terminal project at Mumbai Port had started in April 2005 adding: "This is the seventh extension for submitting price and technical bids."

"The security clearance for HPH has been hanging for the last several months. This has affected the Rs 500 crore container terminal project at Chennai Port and the new terminal at Mumbai Port. Now, others players threaten they will back out from the race due to uncertainty in the execution of projects," they said.

According to government officials, HPH will get security clearance soon as the prime minister's office has already given a green signal.

"Moreover, there was a positive response in the recently concluded India-China border talks in Kerala led by national security advisor M K Narayanan," they said.

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