The construction of the 4th container terminal at Jawaharlal Nehru Port may be delayed further with the partners of the consortium, which was awarded the project, deciding to part ways, Daily Shipping Times reports.
The Rs 6,700 crore-project was awarded to a consortium of PSA International of Singapore and Mumbai-based ABG Ports. The consortium partners have informed JNPT that PSA International alone will take up the project. Confirming the development, a senior port official said that the port trust will take a decision after consulting the Shipping Ministry.
There is no legal issue in allowing PSA to go it alone as the project was awarded on the basis of technical and financial strength of the Singapore firm and not on that of the Indian partner, he said.
According to documents filed at the time of bidding, PSA is the lead member of the consortium and will have management control of the proposed terminal with a 74 per cent stake. PSA will invest over Rs 2,000 crore in the project. There is no official comment on the reason for the break-up of the consortium.
The PSA-ABG team was awarded the project after it emerged the highest bidder offering to share 50.82 per cent of the annual revenue with the landlord port, making it the highest revenue share quoted by a private firm for a port project.
The Rs 6,700 crore-project was awarded to a consortium of PSA International of Singapore and Mumbai-based ABG Ports. The consortium partners have informed JNPT that PSA International alone will take up the project. Confirming the development, a senior port official said that the port trust will take a decision after consulting the Shipping Ministry.
There is no legal issue in allowing PSA to go it alone as the project was awarded on the basis of technical and financial strength of the Singapore firm and not on that of the Indian partner, he said.
According to documents filed at the time of bidding, PSA is the lead member of the consortium and will have management control of the proposed terminal with a 74 per cent stake. PSA will invest over Rs 2,000 crore in the project. There is no official comment on the reason for the break-up of the consortium.
The PSA-ABG team was awarded the project after it emerged the highest bidder offering to share 50.82 per cent of the annual revenue with the landlord port, making it the highest revenue share quoted by a private firm for a port project.