Aurobindo Realty set to sail away with AP port EPC deal

P Manoj Mumbai | Updated on February 28, 2021

A panoramic view of the coastal village of Ramayapatnam in Prakasam district.   -  The Hindu

₹2,634-cr bid for Ramayapatnam project 0.5% lower than govt value; partners Navayuga

Hyderabad-based Aurobindo Realty and Infrastructure Pvt Ltd is set to win the ₹2,634-crore EPC (engineering, procurement and construction) contract from the Andhra Pradesh government for a new port at Ramayapatnam in Prakasam district.

Aurobindo Realty is the real estate and infrastructure venture formed by the promoters of Mumbai-listed Aurobindo Pharma Ltd.

The company, in partnership with Navayuga Engineering Co Ltd, the flagship of the Hyderabad-based CVR Group, placed a price quotation during a reverse tendering process that was 0.5 per cent less than the ₹2,647-crore estimated by the Andhra Pradesh government for the EPC works of Ramayapatnam port.

During the initial round of bidding, the Aurobindo-Navayuga JV had quoted 4.5 per cent higher than the EPC value set by the State government. Megha Engineering & Infrastructures Ltd, the only other bidder in the fray, had quoted 4.9 per cent higher than the estimated EPC value.

The Andhra Pradesh government then initiated a reverse-tendering round in which the Aurobindo-Navayuga team dropped its quotation 0.5 per cent below the EPC value, sources said.

“The bid submitted by the Aurobindo-Navayuga team will be approved by the Andhra Pradesh government soon,” sources said.

The EPC mandate involves civil construction, break-water construction, dredging and back-up area development. The Ramayaptanm port will be developed on the landlord model in two phases with the first costing ₹3,736.14 crore and the second ₹10,640 crore.

Cargo handling

After the EPC work is completed, the AP government will bid out cargo handling operations to specialists in the field.

The detailed project report (DPR) for the new port was prepared by RITES Ltd while AECOM-URS Scott Wilson consortium has been hired as the project management consultant.

Ramayapatnam is one of the four new ports identified by the State government to expand the port capacity to 400 million tonnes (mt) by 2024 from 110 mt.

Published on February 28, 2021

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