The board of trustees of VO Chidambaranar Port would decide on the bid submitted by Transstroy (India)
to build a Rs 355 crore berth for loading 7.28 mn t of thermal coal and copper concentrates a year.
Transstroy has reportedly quoted a revenue share price bid of 28 percent. Transstroy (India) is said to be having a technical tie-up with RussiaÂ’s Corporation Transstroy OJSC.
In December, Transstroy secured a 30-year contract to build a Rs 86.17-crore berth that can handle 2.3 mn t of cement a year, marking its entry into port development.
If Transstroy wins the two coal berths, it will be the third such cargo-handling contract for the firm at VO Chidambaranar port in the past two months.
The port is said to have received a revenue share of of 10 percent and 15 percent from Sterlite Industries, the only other bidder for the project.
Cargo handling contracts at India’s dozen Central government-owned ports are decided on the basis of revenue share—the bidder willing to share the most from its annual revenue with the port gets the contract, according to the port privatization policy.
VO Chidambaranar port is working on expanding its coal-handling capacity to 35.75 mn t by 2020 from 14.75 mn t now with private funds, to cater to the coal-import needs of power plants coming up in Tamil Nadu, where power outages are common.
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