The Hindu Business Line : EC to take final view on JNPT, Kochi box projects soon

THE Election Commission will take a final view in the next few days on whether to allow the Shipping Ministry to evaluate and approve the highest bids submitted by the Maersk-Concor combine and Dubai Ports International (DPI) for building container terminals at Jawaharlal Nehru Port and Kochi Port respectively.

Following an advice from the Election Commission, the Shipping Ministry has submitted both the proposals for its scrutiny to ascertain whether the finalisation of the tender violates the model code of conduct. "The full Election Commission will meet to consider and dispose off the case soon," an EC official said.

The Shipping Ministry, however, is of the view that the approval of the highest bids for the two projects does not in any way infringe on the model code of conduct.

"Both JN Port and Kochi Port projects are being developed through the BOT route where the private operator will invest. The Government is not providing any money to the projects in the form of grants or subsidy. It is an on-going process as the bidding process for the two projects were initiated much before the election dates were announced. Besides, it does not have any impact on the common man", the Shipping Secretary, Mr D.T. Joseph, told Business Line.

Mr Joseph says that the approval of the proposal by the Board of Trustees do not constitute a final clearance before the project is awarded. Section 3 of the Major Port Trusts Act, 1963 states that: "Notwithstanding anything contained in this Section, the Board may, with the previous sanction of the Central Government, authorise any person to perform any of the services mentioned in sub-section (1) on such terms and conditions as may be agreed upon".

This is the only Section in the MPT Act, which is relevant to the award of projects under the BOT route. So, once the highest bid comes in, the Board may authorise the highest bidder to develop and operate the project with the prior sanction of the Central Government.

For securing this prior sanction, the Board will have to meet to discuss and finalise the proposal and sent it to the Government, which will then scrutinise and evaluate it. "Once the Shipping Ministry and the Shipping Minister clears the proposal, it will go back to the Board for a final clearance. So a mere nod from the Board for sending the proposal to the Central Government do not constitute finalisation of the proposal," Mr Joseph noted.

In the case of the JN Port project, a complaint was made to the Chief Electoral Officer of Maharashtra several days after the JNPT Board had met on March 15, cleared the highest bid of Maersk-Concor team and submitted it to the Shipping Ministry for its consideration. " The Ministry is currently evaluating the proposal of Maersk-Concor", Mr Joseph said.

However, after the Election Commission's intervention, the Cochin Port Trust has refrained from submitting the highest bid of DPI to the Shipping Ministry for its appraisal.

The Shipping Secretary also disclosed that the two projects would not require Cabinet approval as the entire bidding process has been carried out in accordance with the framework approved by the Union Cabinet for undertaking such projects in the major ports sector. "Only the Shipping Ministry/Ministers approval is required for the Board of Trustees to award the project to the highest bidder," he said.

The Shipping Secretary had met the Election Commissioners on April 5 after Nirvachan Sadan sought an explanation from the Chairman of Cochin Port Trust for defying the order of the Chief Electoral Officer of Kerala and convening a Board of Trustees meeting on March 29 to discuss and approve the highest bid submitted by DPI.

Acting on a complaint, the Chief Electoral Officer had requested the Chairman, Cochin Port Trust to advise the Board against taking up the finalisation of the proposal without consulting the Election Commission.

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