Kerala plans to negotiate with Vizhinjam bidders

Thiruvananthapuram: With none of the three companies which purchased the Request for Proposal (RFP) documents submitting the finance bid for the Vizhinjam International Deepwater Multipurpose Seaport project, when the deadline ended on Friday, the Government is likely to go in for direct negotiations with the bidders.

Sources said that Chief Minister Oommen Chandy would himself convene a high level meeting most likely on Tuesday to finalise the formalities for direct negotiation with the three companies- Adani, Essar and a consortium consisting of SREI and Spanish firm OHL who had purchased the RFP. The Government may even ask the centre to intervene in the issue.

It should be recalled that no firms had turned up for the tender to select the private partner for developing the port through Public Private Partnership, despite the Centre extending Viability Gap Funding (VGF) of Rs 790 crore to the Rs 4,089-crore.

However, chances for works starting on the project soon after the Supreme Court pronounces its verdict after the final hearing in a case pertaining to the project on March 18, is very bleak.

This is because even if the tender for the project is submitted within the stipulated date, it has to be vetted by technical consultant Ernst and Young and legal consultant Hemant Sahay Associates before the tender is extended to any of the private partners.