Sethusamudram project: Issues to be sorted out soon

Some of the issues in the tender process for dredging works in Sethusamudram project are being resolved and the awarding of works would start soon, said a top official of Sethusamudram Corporation Ltd, a special purpose vehicle which is implementing the Rs 2427-crore Sethusamudram sea canal project off the east coast.

"The international bidders have sought some changes in the tender document. Though certain conditions can be accepted, some of the requested changes are not permissible since it would change the basic character of the tender document. However, we are continuing the dialogue with them to resolve the issues and the contracts will be awarded at the earliest," said N K Raghupathy, chairman of Tuticorin Port Trust (which is the nodal agency implementing the project) and chairman and managing director, Sethusamudram Corporation Ltd.

Talking to reporters after inaugurating a CII conference on 'Building warehousing competitiveness', he said that the contracts for dredging works were expected to be awarded by this month itself.

However, he added that the project would be completed as per schedule, even if the work starts by October 2006. The project is expected to be completed by December 2007.

The project envisages dredging of a 167-km canal in the sea off the east coast up to a draft of 12 m. On Nomination basis, Dredging Corporation of India (DCI) has already been awarded the contract for the first of the four sections in the 167-km canal, which involves dredging to the extent of 13.5 million cubic metres.

He said that the Dredging Corporation had so far dredged around 26 lakh cubic metres and the work was expected to be completed before the targeted schedule of 24 months.

Bidding for the other three sections have been invited and four international companies have already been shortlisted to undertake the dredging simultaneously. The project envisages dredging of 82.5 million cubic metres.