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State to renegotiate Vizhinjam bid


Posted on 26 Mar 2012

The Rs.4,010-crore Vizhinjam Seaport Project is set to be delayed further with the government deciding to renegotiate the financial bid put up by the sole bidder Welspun Infratech-led consortium that has sought an upfront grant of Rs.480 crore from the State.

“The Cabinet has decided to renegotiate the financial bid with Welspun Infratech. Towards this we have decided to set up a committee comprising Chief Secretary, and Secretaries from the Ports, Expenditure and Law Departments,” Ports Minister K. Babu said in Thiruvananthapuram.

When contacted, Parvez Umrigar, Managing Director of the Mumabi-based Welspun Infratech, said he had not heard anything in this regard from the government since submitting the bid and therefore it was difficult to comment.

The development comes even after the IFC, lead adviser for designing and implementing the transaction, reportedly endorsed the Welspun's demand for the Rs.480-crore grant.

The move is set to further delay the project, which has been in the pipeline since 2003, even though the Minister insisted that this would not delay the project.

Asked whether he was open to renegotiate the bid, Mr. Umrigar said, “I do not have any communication from the government. I do not know what the government wants from renegotiating.”

As to what would be the mandate of the proposed panel of Secretaries and how soon it would submit the report, the Minister said, “We want them to give the report at the earliest, say by June-July.''

The government was planning to invite the EPC (engineering procurement & construction) tenders this month but that could happen only after the panel submitted its report. Mr. Babu said the government now plans to invite the EPC tenders by June-July.

Source : The Hindu