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The Cabinet decision approving the Haldia Dock — II projects at Shalukkhali will do little to brighten the prospect of their early implementation.
The projects are supposed to be implemented with private sector participation.
The response of the private sector so far leaves much to be desired. The firms that picked up the tender papers did not submit the papers by last Monday, the deadline.
The Cabinet Committee on Economic Affairs on Thursday approved Haldia projects on design, build, finance, operate and transfer (DBFOT) basis at Haldia Dock II (North), and Haldia Dock II (South).
Haldia Dock-II will comprise two projects, North and South, each having two berths – one mechanised (6.59 million tonnes capacity) and the other multipurpose (5.11 mt), totalling 23.4 mt.
The total cost estimated at Rs 1,700 crore or so.
The requests for qualification (RFQs) were invited in May 2011.
A total of 14 firms for the North project and 15 for the South project responded.
Subsequently, the Haldia dock authorities floated revised RFQs at the instance of Tariff Authority for Major Ports. There were 15 respondents to each project. The dock authorities shortlisted eight of them but only three of the shortlisted, namely TM International Logistics, a Tata Group company, Adani Ports and Concat-Hyundai, picked up tender papers – one of them for one project and the two others for both the projects.
These three firms did not submit their tender documents by the stipulated day.
Several theories are in the air in regard to the lack of interest of the prospective bidders.
First, the controversy over the exit of the ABG Group from two of Haldia dock’s present complex a few months ago might have cast a shadow in future projects at Haldia. But that certainly could not be the major issue.
The draft of the Hooghly river at Haldia Dock II, it is feared, might be less than the claimed figure of nine metres.
Next, the acquisition of 17 acres of land to facilitate railway connectivity might not be easy in the context of the State Government’s declared policy opposing any land acquisition for industrial project.
Third, Shalukkhali is in East Midnapore district which is the battle ground of two political force opposed to each other – one led by the erstwhile CPI(M) supremo and the other by the present rising TMC star.
Already many of the existing projects at Haldia and around have suffered after having been caught in the crossfire.
Finally, and perhaps most important, where is the cargo?
As it is traffic throughput at present dock complex at Haldia is declining. Meanwhile, the Union Finance Minister, in the Budget for 2013-14, announced the government’s plan to support yet another deep-draft port at Sagar Island. And now, Haldia Dock II.
The present health of the hinterland does not really hold out promise for enough traffic for all these projects.
Which private sector will put in money in such a situation?
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