Home » JNPT reviews plan to split Rs 82 bn container terminal project

JNPT reviews plan to split Rs 82 bn container terminal project

JNPT reviews plan to split Rs 82 bn container terminal project
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The board of trustees of the Jawaharlal Nehru port (JNPT) is reconsidering whether to award the Rs 8,200 crore container terminal project by splitting it into two contracts or awarding it as a single contract.

L Radhakrishnan, Chairman of the port, advocated splitting the project on grounds that developing the terminal through two competing partners by redesigning the project will reduce costs and shorten the time needed for implementation.

Earlier this month, the board of trustees of the port discussed the proposal to split the project, but they did not reach any conclusion. A decision is needed before the port issues fresh tenders for the project.

In November 2012, the board approved the proposal to split the contract in order to revive the project that collapsed after the winner of an earlier auction refused to build the facility. The consultants hired by the port have now submitted their reports.

Each terminal with a berth length of 1 km was proposed to have a capacity to load 2.4 million containers a year, according to the restructuring plan approved by the board.

But now Radhakrishnan, who supported the proposal, has become KeralaÂ’s home secretary. Following this, the board is reconsidering the proposal.

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