Recent media reports say that the Union Shipping Ministry, after failed attempts to get the Chennai Mega Container Terminal up and running, has taken off the project from its list of targets this year. The terminal project cost has gone up from earlier estimates of Rs 3,800 crore to nearly Rs 5,000 crore.
In 2006, the four million twenty-foot equivalent unit (TEU) capacity terminal project was conceptualised. However, the project received only two bids from a consortium of Vadinar Terminal Ltd and Essar Port (VOTL), and Adani Port Special Economic Zone (APSEZ).
VOTLÂ’s winning bid of 5.25 per cent revenue share was considered very low for Rs 5,000 crore project. The Ministry has been promising to award the project year after year, but it has been a very complicated process. So, this year also the Ministry is not including it, say sources in the Ministry.
A fresh study has been commissioned by the Chennai Port Trust by a consultant on the project, before it is put up for a re-bidding. The project has been delayed due to various reasons besides poor private sector participation.
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