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Re-tender of the Vizhinjam international seaport and container transhipment terminal is now a matter of time.
A final decision would be taken by the State Cabinet, which is now seized of the matter, the State Minister for Ports, Mr K. Babu told Business Line .
SINGLE BID
This came about as an empowered committee chaired by the chief secretary arrived at the conclusion that pursuing the single bid received was not in the State’s interests.
The committee in turn conveyed its observations to the State cabinet. It would take up the matter for discussion at the ‘earliest possible’ opportunity.
“If not this week, then probably during the next,” the minister said.
The sole bid by a Welspun Infratech-led consortium for such a large and prestigious project had propped up its own procedural issues, holding up a decision.
The consortium emerged as the sole bidder after the centre refused security clearance to Adani Ports, which too had entered the last round of bidding.
Mr Babu described as unacceptable the demand by the Welspun consortium to provide a grant of Rs 479 crore, which was later revised to Rs 399.55 crore.
Committed to project
But the minister was confident that this would not in any way diminish investor interest as and when the multi-thousand crore project was brought up for re-tender.
The State Government was committed to disproving eternal pessimists “who have doubted the State’s capacity to promote and implement big infrastructure projects,” he said.
It was hoped the project would get the environment impact assessment (EIA) clearance, the process for which has entered an advanced stage.
CABOTAGE EXEMPTION
More importantly, it expects to lobby with the Centre to grant exemption from cabotage provisions.
“We have already made this proposal with respect to the Vallarpadam container transhipment terminal and expect a favourable decision soon,” the State minister of ports said.
EIA clearance, cabotage exemption and basic infrastructure that the Government is setting up as ‘landlord’ would combine to make Vizhinjam a compelling proposition, he added.
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