The Vizhinjam port developer has clarified that the sole bidder Welspun-led consortium has been asked to come back with ‘a best offer.'
This does not involve any change in the technical or legal aspects of the bid submitted, according to a top official of Vizhinjam International Seaport Ltd (VISL).
Mr A.S. Suresh Babu, Chief Executive Officer, VISL, told
The project advisor, IFC, has sought to know if a relook at tariff projections and a reworking of ‘realistic financials' would be possible. The ‘best offer' is expected to be received with a week's time, Mr Suresh Babu said. It will be reviewed by the empowered committee led by the Chief Secretary. It will then be referred back to the State Government for its approval and concurrence.
Led by Welspun Infratech, the consortium had sought an upfront grant of Rs 479.54 crore from the State Government over a period of 16 years.
Mr Suresh Babu said it is likely that the consortium would be asked to scale back this amount too to the extent possible. Being proposed as a landlord port, Vizhinjam will see the State Government invest Rs 3,040 crore in setting up the basic infrastructure.
The infrastructure and assets will be leased to the private operator, who will invest Rs 970 crore on building the superstructure and installing other equipment. It is on this count that the Welspun consortium has asked for an upfront grant. It was the only bidder left in the fray after the Union Ministry of Home Affairs denied security clearance to Adani Ports and SEZ. The bid-renegotiating committee comprised Mr Sanjay Garg, Secretary, Law; Mr R.K. Singh, Secretary, Ports; and Mr A. S. Suresh Babu, CEO, Vizhinjam International Seaport Ltd.