Top bidder Essar may have to forgo one of two Paradip berths

Top bidder Essar may have to forgo one of two Paradip berths
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First Published: Fri, Mar 06 2009. 01 02 AM IST
Updated: Fri, Mar 06 2009. 01 02 AM IST
Bangalore: Essar Group company Essar Shipping, Ports and Logistics Ltd, which emerged as the top bidder to develop two berths at state-owned Paradip port in Orissa, may have to give up the coal handling berth as a tender condition prohibits one entity from developing both the terminals.
Essar emerged as the only bidder for an iron ore terminal and its bid for the coal terminal was higher than that of the only other bidder, the Adani group-promoted Mundra Port and Special Economic Zone Ltd (MPSEZ).
Paradip Port has asked MPSEZ to match the price bid quoted by Essar for the coal terminal.
MPSEZ, however, is not keen on matching the revenue share ratio quoted by Essar, according to a person familiar with the matter.
If MPSEZ decides not to match the revenue share, the terminal will have to be put up for auction again, he said on condition of anonymity.
“These are internal details which we are discussing. Nothing has been finalized,” port chairman K. Raghuramaiah said over telephone.
Paradip Port plans to build a Rs479.01 crore terminal to handle 10 million tonnes of coal a year, and a Rs591.35 crore berth to handle iron ore of similar quantity.
The bids for the two projects were submitted and opened on Wednesday.
Bidders willing to share the highest percentage of annual operating gross revenues with the port will be declared winners.
Essar became the highest bidder for the iron ore berth since a bid submitted by the only other bidder, a consortium of Sical Logistics Ltd and Orissa Stevedores Ltd, was not opened because it was not accompanied by the mandatory bank guarantee in the prescribed format.
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First Published: Fri, Mar 06 2009. 01 02 AM IST