In a bid to bring down the number of litigations, the Ministry of Shipping has removed the cap on the number of players who can participate in the financial bidding of port projects In a move to attract more players to participate in port projects under the public-private partnership (PPP) model, the Ministry of Shipping (MoS) has removed the cap on the number of players who can participate in the financial bidding for port projects. Till date, only five qualified players were allowed to participate in financial bidding resulting in an increasing number of litigations filed by those left out, thereby hampering port projects. Now, all players who are technically competent will be allowed to make financial bids.
In this context, Benoy Krishna Dey, senior manager of Tara Marine Syndicate, a small-sized container shipping firm in Kolkata says, “Litigations are one of the major bottlenecks in port development projects. It not only delays the project, but also results in huge monetary losses for the port. In case of litigation, by the time the final verdict comes from the court, the cost of the project rises manifold. We hope that the decision of MoS will ensure a decline in the number of litigations in future, thereby expediting port projects.”
 Govt to receive better financial offers
Industry players are of the opinion that the MoS’ decision to allow more bidders will help it to get better financial offers for carrying out port-related work. In this regard, Dilip Parik, managing director of Aviation Logistics, a mid-sized logistics firm in Chennai says, “The decision will break the monopoly of bidders to set rates of their liking and allow port projects to be carried out at a cost-effective price point.”
The decision is similar to the one taken by the National Highways Authority of India (NHAI) last year. It is to be noted that last year NHAI removed the cap on the number of private players who could bid for road projects under the PPP model. The verdict has come at an opportune moment considering the fact that six port projects will up for bidding by the end of 2009-10. Arup Choudhury |
