The Hindu Business Line : Hutchison awaits nod to bid for Chennai, Mumbai box terminals

Bidding process
Chennai port has accepted bids for the container terminal, but is awaiting the clearance of all bidders before opening them.
Mumbai port is awaiting security clearances of bidders before accepting the financial bids.

New Delhi , May 15

With the Government yet to give a security clearance to Hutchison Port Holdings to bid for container terminals at Chennai and Mumbai ports, the validity of bids for Chennai port terminal is fast approaching expiry.

In fact, the Chennai Port Trust has written to the bidders asking them to extend the validity of their bids to September 15 against the present date of June 1. Meanwhile, Mumbai port has again delayed the last date for accepting bids to June 15, according to sources.

For building and operating container terminals at Chennai and Mumbai ports, the Hong Kong-based Hutchison has bid along with Larsen & Toubro.

However, the entire bidding process for both the terminals has been hanging in balance, as the Government has not given a security clearance to Hutchison. The matter had been referred to the Cabinet Committee on Security, which further referred the issue to the National Security Advisor.

Chennai port has accepted bids for the container terminal, but is awaiting the clearance of all bidders before opening them.

Meanwhile, Mumbai port is awaiting security clearances of bidders before accepting the financial bids.

For the Rs 492-crore project at Chennai, two other consortium bidders are Port of Singapore Authority/Sical and Emirates Trading Agency/Gammon India. All players involved with the exception of Hutchison have the security clearances.

The port has been delaying opening the bids since late January. However, since the validity of bids is getting over by June 1, Chennai port has written to all bidders asking them to extend the validity of the bids to September 15.

Meanwhile, for the Rs 1,200-crore offshore container terminal project in Mumbai, 11 companies are in the race including Mitsui OSK, P&O, Evergreen, Gammon India and ABG Group.

Mumbai port has shifted the last date for acceptance of bids several times. The bidding date was first fixed at around November 2-4, 2005. This was shifted to November 28 at the request of some bidders during the second pre-bid meeting in October.

After November 28, the last date has been extended several times at the Government's instance.