Chettinad Builders and South India Corporation Limited (SICL), the lone bidder, on Thursday bagged the contract to construct the Rs.150 crore multi-cargo terminal at Kamarajar Port Limited (KPL).
This is the second project to be awarded by the Port authorities in the last two weeks, with the first one was awarded to Adani Ports and Special Economic Zone for constructing Rs.1,270 crore container terminal.
The letter of approval was given to Chettinad Builders and SICL on Thursday, a day after Ennore Port Limited (EPL) was renamed as Kamarajar Port.
As per the proposal, the selected bidder has to design, build, finance, operate and transfer the multi-cargo terminal for a concession period of thirty years. The terminal will have a quay length of 270 metres to handle two million tonnes of bulk and project cargoes such as turbine and generators, windmills, fertilisers and wooden logs. It will come up between the container and iron ore terminal.
According to informed sources, eight parties had evinced interest to construct the multi-cargo terminal. During the scrutiny, the Port officials rejected two proposals. Even though there were six bidders, only Chettinad Builders and SICL submitted its bid.
“Chettinad Builders and SICL had offered a revenue share of 36 per cent. We were surprised by the offer as the revenue share was higher than what it was suggested by our project advisor. We have accepted the lone bid and issued the letter,” said a KPL official.
For the Rs.1,270 crore container terminal KPL received two bids, of which Adani Ports and Special Economic Zone offered a higher revenue share of 37 per cent and bagged the contract. Both the projects are expected to be commissioned more or less during the same time.