Business Line reported that Essar Ports is the lone bidder for the INR 3,700 crore mega container terminal project at Chennai port.It has offered a revenue share of 5.25%for the project,slightly above the 5%Adani Ports offered in the earlier bid.
A senior Chennai Port Trust official who did not want to be named said that the two Indian groups Essar and Adani were the only bidders for the project,designed to handle 4 million 20 foot containers annually.Adani could not get security clearance on time,leaving Essar as the lone bidder.
The ChPT feels the revenue share offered by Essar was low and did not meet their expectations.
The official without giving an indication of ChPT's expectation from the bidder said that the price bid for the project was opened today.We feel the revenue share was too low.We will seek an increase from Essar.
In the previous bid for the same project,Adani was the sole bidder,offering a revenue share of 5%.This was rejected by the ChPT on the ground that the rate was too low.
The ChPT issued a fresh bid,in which seven companies entered the qualification stage.The final fight was between Adani Ports and Essar Ports.
The project is the biggest outside Gujarat for the winner.While Adani's base is in Mundra,the Essar group has a strong presence in the Vadinar and Paradip ports.For the proposed'build,own and transfer'project at Chennai port,the cost of dredging,floating craft and navigational aids estimated at INR 561 crore will be borne by the port trust.