Global tenders for the ambitious Vizhinjam International Container Transshipment Terminal (ICTT) project have been scrapped for the third time. The Cabinet on Wednesday decided to reject the bid of Welspun consortium and re-tender the project after it gets environmental clearance,” Chief Minister Oommen Chandy said after the weekly Cabinet meeting.
The consortium of Welspun Infratech, Welspun Corp and Leighton was the sole bidder for the port operator’s post for the multi-crore project. Last week, the Chief Secretary-led empowered committee had recommended the government to reject Welspun’s demand for grant and entertain its bid only if the demand was withdrawn. The committee had also suggested that the state float fresh tenders if it had no other option.
Initially, the Welspun consortium had asked for `479.54 crore grant over a period of 16 years. Through negotiations, this was brought down to `399.5 crore.
The Environmental Impact Assessment (EIA) for the project was completed on June 30 and the state will apply for clearance after publishing the data and holding public hearings on it.
This is the third time a global tender for the multi-crore project is being scrapped. The first time, the consortium of China Harbour Engineering Company Ltd, Kaidi Electric Power Company Ltd and Mumbai-based Zoom Developers Pvt Ltd were denied defence clearance on the ground that two of the firms were Chinese.
The second time, the Cabinet cleared awarding contract to a consortium led by Lanco Kondappally Pvt Ltd but Zoom approached the court.
As events turned out subsequently, Lanco backed out and the government was back to square one.
Going for a third round, the previous LDF Government decided to construct the port on landlord model, where the port would be owned by the state.
Welspun was left as the sole bidder after the Union Home Ministry denied clearance to Mundra Ports and SEZ Ltd.
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