Mumbai Port defers project bidding to Feb 10

Following the delay in security clearance for the Hong Kong-based Hutchison Port Holdings (HPH), Mumbai Port Trust (MbPT) has extended the deadline to submit price and technical bids for its ambitious Rs 1,200 crore offshore container terminal (OCT) project to February 10.

The deadline for submission of the bids, which had already been postponed three times before, was today.

The delay in security clearance for HPH by Indian intelligence agencies on grounds of the former's Chinese connections has put engineering and construction major Larsen and Toubro (L&T) in a spot.

L&T, one of the shortlisted bidders for the OCT project, had appointed HPH as management contractor for handling terminal operations. Security clearance is a must for management contractor too.

"L&T had a made similar tie-up with HPH for bidding Rs 500 crore second container terminal project at Chennai Port Trust (ChPT). The fate of ChPT is also in limbo due to clearance problem. As it is already committed to HPH as its management contractor, L&T cannot go ahead alone," industry sources said.

Interestingly, a Taiwanese shipping company, Evergreen Marine Corporation, which was awaiting clearance along with HPH, secured clearance on January 6. MbPt secretary, P Mohana Chandran, said the port has got security clearance for Evergreen Marine on last Friday.

"Now, we are awaiting security clearance for HPH. We are extending the deadline to submit the final bids to February 10," Chandran added.

According to government sources, the Prime Minister Office has given a go-ahead to HPH. Sources close to the development, however, however, pointed out that other procedures are time consuming.

Meanwhile, other bidders have expressed their dissatisfaction, accusing that the deadline was extended for the fourth time only to favour HPH.

"The bidding process has been extended unduly since last November to facilitate the entry of HPH. Some of the global representatives of the shortlisted management contractors of other bidders are already camping in the country," the sources said.

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, citing its Chinese connections.