The evaluation of the bid submitted by leading private multi-port operator Adani Ports and Special Economic Zone Ltd. (APSEZ) to build the port superstructure and operate the ambitious Vizhinjam International Multi-Purpose Seaport project has commenced.
Detailed evaluation
The detailed evaluation is being carried out jointly by transactional advisors Ernest & Young and financial advisors Hemanth Sahayi Advocates.
The two firms have been asked by Vizhinjam International Seaport Ltd. (VISL), the special purpose vehicle (SPV) set up to execute the project, to give a detailed report in a week, VISL Managing Director and Chief Executive Officer A.S. Suresh Babu told The Hindu .
As soon as the report is received, the five-member empowered committee, headed by Chief Secretary Jiji Thomson, will examine it.
The report, along with the recommendations, will go to the VISL board chaired by Chief Minister Oommen Chandy.
With the inputs, it will come up before the Cabinet for its nod, probably before May.
Rs.1,635 crore sought
The Ahmedabad-based APSEZ has sought Rs.1,635 crore as grant from the State.
The phase I is estimated to cost Rs.7,525 crore.
Of the total cost, the public private partnership (PPP) part is Rs.4,089 crore.
Of this, the State and the Union governments’ viability gap funding will be Rs.818 crore each (20 per cent each). The State will take up construction of the breakwater, fishing harbour, and supporting infrastructure at a cost of Rs.1,463 crore.
Previous bidder
In 2012, APSEZ (erstwhile Mundra Ports and Special Economic Zone) and a consortium led by Welspun Infratech had made it to the penultimate stage of bidding.
But, the Adanis were denied security clearance by the Union government.
Thus, the lone bidder — Welspun Infratech — requested a grant of Rs.479.54 crore from the State over the initial 16 years.
The empowered committee opined that it was ‘not in the interest of the State,’ resulting in the retendering of the project.
As much as 90 per cent of land had been acquired.
VISL official said the ownership of the land would be with the State and the selected firm would only get the licence to construct and operate the port for 40 years.
Empowered panel will examine report
Ownership of land will be with State, says VISL
