The State Government has sought a revised offer from the Welspun consortium, the sole bidder for the Vizhinjam deepwater seaport and international container transhipment terminal project.

The bid-negotiating committee, constituted by the government, has asked the consortium, led by Welspun Infratech, to rework the financial bid and submit the best offer within a week.

The committee, comprising Law Secretary Sanjay Garg, Ports Secretary R.K. Singh, and A.S. Suresh Babu, Chief Executive Officer, Vizhinjam International Seaport Ltd., held discussions with representatives of the consortium and the project advisers, International Finance Corporation, on Monday.

Mr. Suresh Babu told The Hindu that the best offer was expected to be submitted in a week. The consortium had sought an upfront grant of Rs.479.54 crore from the government over 16 years to operate the port.

The consortium was the only bidder in fray for the port operator after the Union Ministry of Home Affairs denied security clearance to Adani Ports and Special Economic Zone Ltd., the other contender that had made it to the penultimate stage of bidding.

Under the “landlord model” on which the Vizhinjam seaport is based, the government will retain ownership and control of the port land and infrastructure. The government will invest Rs.3,040 crore in creating the basic port infrastructure, including the construction of a breakwater and reclamation of land for the port terminals, quay walls, and berths.

The infrastructure and assets will be leased to a private operator who will have to invest Rs.970 crore on building the superstructure and installing equipment such as cranes and lifts. During the lease period of 30 years, the revenues from the port operation will be shared by the operator and the government.

The government's plan is to commission the first phase of the project by 2015.