The Hindu Business Line : IL&FS to examine Beypore port proposal

THE Kerala Government has roped in IL&FS Infrastructure Development Corporation (IDC) to examine the technical and financial proposal submitted by Parisons Group for the development of Beypore port near Kozhikode.

IL&FS IDC has been given three months' time to examine the proposal in detail and submit the report to the Ports Department. The proposal has been structured by PricewaterhouseCoopers for the Parisons Group.

The Rs 500-crore development project envisages construction of six berths and increasing the draught of the basin to handle general as well as petroleum, oil and lubricant cargo. Other facilities planned include dedicated berths for handling timber and scrap cargo.

According to Ports Department officials, the proposal for the development of Azhikkal port, near Kasargod, has also made much headway with Universal Lubricants of Sharjah, which has been sending its technical and financial experts for discussions on the project.

The department, in the meantime, is reworking the project profile to bring down the cost. The exercise involves reviewing the cargo potential and reducing the number of facilities by optimising the handling capacity.

The original proposal, worked out by ICICI-Kinfra in association with Howe Ltd, envisaged handling facilities for ships of up to 50,000 dead weight tonnage (dwt), a dry dock, a ship repairing yard, a warehouse and an oil jetty. The total project outlay was put at Rs 1,400 crore with the first phase at a cost of Rs 350 crore.

The department is now trying to bring down the total cost to Rs 700-800 crore and the first phase cost is to around Rs 200 crore. This will mean cutting back on some of the facilities from the original proposal.

On the proposed international container transhipment terminal at Vizhinjam, near here, the officials said that the special purpose vehicle would be in place by December 15 and that it would be named `Vizhinjam International Seaport Ltd.' The company, with a paid-up capital of Rs 5 crore, will be fully owned by the State Government initially.

Meanwhile, the closing date for submitting the technical proposals for developing the port has been extended to December 17. In all, eight companies, including three foreign firms, have expressed interest in the project.