UPDATE:SC allows Paradip Port Trust to reinvite bids for coal berth

The Supreme Court has allowed Paradip Port Trust (PPT) to re-invite financial bids for developing a deep draught coal berth at Paradip. However, it asked PPT to keep its decision in abeyance till further orders.

The project, which envisages constructing coal-handling facilities for about 10 million tonnes at Paradip Port, is a major infrastructure project to enable the port to enhance its coal-handling capacity and would generate revenue of around Rs 150 crore per year.

A Bench headed by Justice B Sudershan Reddy, while issuing notice to the Ministry of Shipping, Road, Transport and Highways and Jindal Steel and Power Ltd (JSPL), allowed PPT to re-invite financial bids from the short-listed bidders.

The Ministry on May 13 had directed the Port to re-invite financial bids from the short-listed bidders for whom security clearance was granted. The short-listed bidders excluded JSPL, which was found ineligible in 2007.

"In the meanwhile, it shall be open to the petitioner (PPT) to take an appropriate decision in the matter pursuant to the letter dated May 13, 2009, issued by the Government of India, Ministry of Shipping, Road Transport and Highways but the decision which may be so taken shall not be given effect to until further orders," the Bench stated.

The apex court order came on a petition filed by PPT challenging the Orissa High Court's interim ruling that restrained it from taking any action pursuant to the Central government's communication.

Attorney General G E Vahanvati, appearing for PPT, alleged that the impugned order, passed on a plea filed by JSPL, had stalled the bidding process and the delay in the tendering process would cause immense difficulties and financial loss to the project of national importance.

"The Port Trust is ready and willing to comply with the direction of the GoI for going for a re-bid of the eligible tenderers which had been granted security clearance and there was no necessity nor it is legally sustainable to grant stay of the process of tendering at the instance of JSPL which was not found eligible at the very initial stage," PPT stated.

Stating that there was no illegality in the tendering process, the Port said that the decision for re-tendering from the initial stage or at the financial bid stage was a matter within the domain of the executive.