Adani Ports and Special Economic Zone
Ltd (APSEZ), Singapore’s
PSA International Pte Ltd, JSW Infrastructure Ltd and J M Baxi Ports and Logistics Ltd
were among the four major port operators that participated in the pre-bid
meeting.
Potential
bidders are calling for “re-working”
the project cost estimated by the Port Authority in a global tender which some
say was lesser by “at least 50 percent.”
The port authority has sought bids based on the lowest
viability gap funding (VGF) quoted by bidders for developing the project,
marking a departure from the model followed so far by the Union government
owned major ports wherein cargo handling contracts are finalised on the basis
of the highest royalty per twenty-foot equivalent unit (TEU) or per ton of
cargo quoted by the bidders.
“The VGF
shall constitute the sole criteria for evaluation of bids: The project shall be awarded to the bidder quoting
the lowest VGF,” the port authority wrote in the tender documents.
The VGF has been capped at Rs1, 950 crores or actual
quote, whichever is lower.
With the Cabinet clearing the project in the last week
of February, re-working the cost estimates looks unlikely.
Mr. T K Ramachandran, Secretary,
Ministry of Ports, Shipping and Waterways who was instrumental in pushing the much-delayed
project during his time as Chairman of VOC Port Authority, assured potential
developers during the Mumbai road show that the government has “built in
necessary provisions in the sanction orders which enables us to be more
flexible” to make the project work.
“You can
tell us at the time of the pre-bid what exactly you think are the changes that
you require but, of course,
everyone can ask for the Himalayas, like someone said Rs4,000 crores of VGF. If
you ask for Mount Everest, at least you may get Kanchenjunga or some of the
other levels which we can try and help you,” Mr. Ramachandran insisted.