The Kerala Government found itself in a familiar bind after Adani Ports and SEZ emerged as the sole bidder for the Vizhinjam international seaport and transhipment container terminal when it was floated for a fifth time.

According to sources, proposed project to be executed in the public-private partnership mode.

Financial grant Bids were invited for the ‘financial grant’ required by a bidder.

The bidder could also offer to pay a premium in the form of a revenue share and also an upfront premium in terms of the draft concession agreement.

Vizhinjam had become the first port project to be granted a viability gap funding (VGF).

The Centre’s share of VGF would come up to ₹818 crore.

Up to 20 per cent of capital cost is provided by the Centre for supporting PPP projects that are considered ‘economically viable’ but are falling short of financial viability.

Interestingly, Adani was one of the two bidders in 2012, but it was rejected by the State Government after it was refused security clearance by the Centre.

Sole bidder This had left behind a Welspun Infratech-led consortium in the fray as the sole bidder.

It, too, failed to make the grade after an empowered committee chaired by the chief secretary felt its offer was not ‘in the best interests of the state.’

This time around, too, the bid documents will be vetted by an empowered committee, before it is referred to the board of promoters of Vizhinjam International Seaport Ltd and the state cabinet.

Earlier, the state government had reached out to Adani Ports and SEZ, Essar Ports and Srei-OHL Consortium after none turned up in the earlier round of bids.

The deadline was extended twice in the new year to allay their concerns, chief of which was the one relating to relaxation of Cabotage (shipping along coastal routes, port to port) rules with respect to the proposed port.

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