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India: MPSEZL Only Bidder for Azhikkal Port Development Project.


Date: 04-11-2010
Subject: India: MPSEZL Only Bidder for Azhikkal Port Development Project
Mundra Port and SEZ Ltd (MPSEZL) has submitted a bid in response to the global tender inviting companies for the development of Azhikkal port in Kannur district in north Kerala on public-private partnership (PPP) basis.

It is learnt that MPSEZL was the only company in the fray when the tender period closed on October 29.

The Kerala government had earmarked Rs 463 crore outlay for the port project, and MPSEZL reportedly submitted a proposal for a Rs 3,000-crore project to be implemented in two phases.

The company also offered four per cent revenue share to the state government over a concession period of 30 years.

Azhikkal is one among 17 notified ports identified by the state to be developed through the PPP route.

Located midway between New Mangalore Port and Cochin Port, it was orginally proposed for creation of berthing and allied facilities for cargo and containerships as well as a ship-repairing yard. The facilities proposed also included an oil jetty and a dry dock.

But now the proposal to set up a combined cycle mega thermal project at Cheemeni in Kasargod district has added to the importance of this port. Since the thermal project will have a coal-based generating station, this port is ideally located to handle this.

Coal is likely to be sourced from Talcher in Orissa where the state government has received permission for mining from a specified coalfield.

The development of the port has been pending for more than a decade. The first project report was prepared by ICICI-Kinfra, a joint venture between ICICI and Kerala Industrial Infrastructure Development Corporation, in association with Howai India.

The ocean study was done by L&T Ramboll.

A couple of years ago, there was a proposal by the Union government to include the port in the National Maritime Development Programme (NMDP). The Kerala government appointed Deloitte India Ltd to rework the detailed project report (DPR) of ICICI-Kinfra to suit the requirements of NMDP.

However, there has been no progress in this direction since then, prompting the state to take up the project development on PPP basis.

The state has already reportedly spent around Rs 20 crore for developmental activities in the port so far, including the construction of a wharf.

Source : dredgingtoday.com

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