It is learnt from media reports that the board of trustees of the Chennai port approved a proposal to conduct fresh price bidding from pre-qualified bidders for the Rs 3,686 crore container terminal project.
The move comes after the central government allowed Adani Ports and Special Economic Zone (APSEZ), IndiaÂ’s biggest private port operator, to participate in the auction process.
It may be recalled that in November 2010, APSEZ was denied security clearance for the project. This would be the third round of price bids for the much-delayed project.
Chennai port rejected the 5 percent revenue share offer of APSEZ in the first round of bidding, when the company was the single bidder. The port then asked for price bids again and received two—from the Essar Group and APSEZ. APSEZ’s bid was not opened because by then it didn’t have security clearance.
The Essar Group had placed a revenue share price bid of 5.25 percent for the project when the bid was opened on December 24. Port contracts are decided based on which bidder is willing to share the most revenue.
In order to negotiate a higher revenue share with Essar, the board of trustees of Chennai port decided to set up a committee. The process was deferred till the government decided on a representation filed by APSEZ seeking a review of the denial of security clearance.
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