Bidding for fourth terminal at JNPT may be delayed

Legal issues could further delay the bidding for the fourth container terminal at Jawaharlal Nehru Port.

The Bombay High Court on Tuesday adjourned to June 20 the hearing for admission of a petition field by Adani Enterprises, one of the bidders challenging the Government's decision denying them security clearance. Though JNPT was free to open the bids (since the petition is yet be admitted and there is no stay), it decided against it as the case can take any course.

Security clearance issue

Of the five parties that submitted bids, Adani, which is running the Mundra Port in Gujarat, was the only one denied security clearance.

If its petition is admitted, it will further delay the bidding process, as the validity of the bids expires on June 30.

Since Adani was also denied security clearance for bidding for another terminal at Vizag, the Visakhapatnam Port Trust has also been made a party to the case.

The tender for the Rs 6,500-crore fourth terminal project floated last year was already delayed due to legal issues.

The APM Group, an existing terminal operator, earlier took JNPT to Supreme Court challenging its decision not to allow it to bid for the project.

The Supreme Court order last month allowed APM to bid for the project. When JNPT resumed the tender process, Adani Enterprises went to court as it was denied security clearance.

It is not clear on what grounds the Adanis were denied security clearance.

The fourth terminal is crucial to JN Port as the existing terminals are operating at more than 100 per cent capacity.

This is not an ideal situation as it could put huge pressure on men and machinery at the port, said a port user.

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