Kerala extends last date to submit Vizhinjam port bids

The proposed port project is to come up near the world- famous Kovalam beach and is expected to be completed in three phases, with the first phase to be ready in 2019

The Kerala government today decided to extend the last date for submitting final bids for the Vizhinjam International seaport project by one month.

A high-level meeting chaired by chief minister Oommen Chandy decided to re-tender the project if there are no takers even after the extended period.

The decision was taken due to the backing out of the three companies who were in the fray till the final round of bidding. The state government did not receive tender from any of the companies when the deadline ended last Friday.

Addressing the media, K Babu, minister for ports, said the three companies that had expressed interest in the project would be given one month to submit the final bids. These include Adani Ports, Essar Ports and Srei OHL - a consortium Srei Infra and Obrascon Huarate Lain, a Spanish construction and civil engineering company.

Responding to a query, the minister said there had been apprehensions among the companies about some issues relating to the project.

"The chief minister will communicate with the companies to sort out such issues. He will convene a meeting with the top brass of the companies soon," said Babu.

He said suspense over relaxation of the Cabotage Act could have been the major hurdle. However, he termed it to be a non-serious issue at this juncture and added the state government had already brought this to the Centre's notice.

The chief minister himself had raised the issue with the Prime Minister. Cabotage exemption comes into picture once the port becomes operational. The state government, however, is hopeful of getting sanctions from the Centre, he added.

He said the government was not in a position to implement the project in the public sector. There is a strong demand from the people of Thiruvananthapuram district to implement the project in the public sector, he added.

However, the state government will provide infrastructure facilities to the project by spending around Rs 2,700 crore. Today's meeting was attended by finance minister KM Mani, industries minister PK Kunhalikutty and other top officials.

The proposed port is to come up near the world- famous Kovalam beach and is expected to be completed in three phases, with the first phase to be ready in 2019.

Once completed, ships with a capacity of even 18,000 TEUs can dock at the port. The port site has a natural depth of 24 metres, one of the deepest in the world and thereby requires no dredging.

With the port lying in the vicinity of the busy international shipping route, it is envisaged to handle 4.1 million containers annually.