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Govt to reject bid of ABG Group

Govt to reject bid of ABG Group

Media reports indicate that the Kerala government decided to reject the sole bid of ABG Group to develop a cement terminal at Azhikkal port in Kannur at a cost of Rs 120 crore.

Reports indicate that the government decided to reject the bid on certain technical grounds including disagreement on the revenue share offered by the company.

The government feels that the company’s offer to give Rs 9 per metric tonne of the consignment coming to Azhikkal would be negligible over the years. Therefore, the government decided to reject the bid and go for fresh bidding.

Though there is concern about the lack of enthusiasm on the part of bidders to come forward, the opinion among some officials is that bidders will definitely come if more publicity is given.

It may be recalled that the state government floated tender for the terminal project twice and in both the cases ABG Group was the only bidder.

Incidentally, in 2010 a tender was floated for a multipurpose terminal based on the feasibility report prepared by Deloitte Touche Tohmatsu India Pvt Ltd.

Though another company had won the bid, it later backed out after the prospects of bringing coal through the port diminished after the thermal power plant project in Kasaragod failed to take off.

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