Modhwa issue: GMB puts ball in advocate general's court

While trying to break the impasse over the Modhwa port, the Gujarat Maritime Board (GMB) has sought legal opinion over the bidding process of the greenfield project.

GMB has consulted the advocate general on whether to invite fresh bids or allot the project to the Adani Group, sources in the state's maritime regulator told Business Standard.

Adani, which is a frontrunner in the bidding process, had pointed out that the government's decision to identify and develop Modhwa violates certain clauses in the concession agreement signed between the Adanis and the GMB according to the privatisation policy.

About four companies, including the Adani Group, Hira Exports, GVK Infrastructure and Gammon Infrastructure, have been shortlisted in the final bidding process.

GMB sources said Mumbai-based Hira Exports had bid the highest as far as the premium on waterfront royalty goes, which is one of the main criteria for the bidding.

"There is a tie between the companies who had bid and we are trying to sort out the matter," a senior GMB official said. When contacted, a senior Adani Group official refused to comment on the issue.

Modhwa is located in Mandvi taluka of Kutch and is situated about 40 km from Mundra port, which is being developed by the Adani Group. The group had, in the past, urged the GMB to defer the bidding process for Modhwa till December 2008.

It had said Modhwa was never among the 10 greenfield sites in the privatisation policy and that the government would not identify or develop any new site till 2008.