Weekly Insight learns from top government sources that Adani Ports and Essar Ports received approval from the union home ministry to participate in the 4,000-crore mega container terminal project in Chennai Port.
Chennai Port plans to set up a mega container terminal, with a capacity of 4 million TEU (Twenty foot-equivalent units). The proposed terminal has been envisaged as the largest container terminal on the country’s east coast and it will be able to handle ultra-large container vessels.
Essar Ports had to seek clearance from the ministries of home, defence and external affairs after it merged its subsidiaries with its holding company. Adani Ports is said to have secured the clearance earlier, when it was the lone bidder for the project in 2011.
Chennai Port Trust plans to invite fresh bids for the project after it rejected a lone bid in 2011 by Adani Ports, which offered just 1.5 per cent revenue share to the port.
Adani and Essar were the only companies that bid again for the project after the port asked the seven companies that were active during the qualification stage to bid.
Companies such as the Dubai-based DP World, Port of Singapore Authority (PSA) and Larsen & Toubro, which bid in the initial stage, withdrew later owing to various reasons. PSA could not participate due to the monopoly clause.
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