The Hindu Business Line : CCS refers Hutchison Port issue to Security Advisor

Security check
The Mumbai port had sought security clearances for all its bidders before accepting the financial bids.
The Chennai port had sought security clearances before opening the financial bids, though it had already accepted the bids.

New Delhi , March 17

The Cabinet Committee on Security (CCS) has referred the issue of giving a security clearance to Hutchison Port Holdings to participate in the bidding process for new container terminals at Mumbai and Chennai to the National Security Advisor, Mr M.K. Narayanan.

This has further delayed the process of setting up container terminals at Mumbai and Chennai ports.

The last date for going ahead with the bidding process has now been extended to April 15, said official sources.

The date for accepting bids for the Rs 1,200-odd crore Mumbai project was March 16; whereas for the Rs 500-crore Chennai project, the Government had asked the port authorities to open the bids after March 15.

Security clearances

A security clearance from security agencies was sought for all the bidders aiming to build and operate the container terminals.

While the Mumbai port had sought security clearances for all its bidders before accepting the financial bids, the Chennai port had sought security clearances before opening the financial bids of the players, though it had already accepted the bids. The CCS took up the issue for discussion last Thursday.

The matter had been referred to the CCS as a consensus could not emerge amongst various departments on whether a security clearance could be given to Hutchison.

Hutchison Port Holdings, alongwith Larsen & Toubro, is in race to construct and operate the Mumbai offshore container terminal and has already submitted a financial bid for the Rs 492 crore-Chennai (second) container terminal.

Bids opening delayed

The Chennai Port Trust was supposed to open the financial bids this January.

The offers were opened on November 7, 2005 and three bids were received — from Port of Singapore Authority/Sical and Emirates Trading Agency/Gammon India and Hutchison Port/L&T.

Technical bids were opened and clarifications were obtained from the bidders subsequently.

The Mumbai Port Trust has also shifted the last date for acceptance of bids several times. After the first pre-bid meeting with bidders, the bidding date was 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.

But after November 28, the last date has been altered five times at the Government's instance — to December 15; January 9, 2006; February 10, February 28, March 16 and now April 16.