Welspun Consortium seeks Rs 479.54 crore grant

THIRUVANANTHAPURAM: The Welspun Consortium has requested Rs 479.54 crore as grant from the State Government for partnering Kerala in the multi-crore Vizhinjam seaport project. The price bid of the consortium was opened at the Vizhinjam International Seaport Ltd (VISL) on Monday afternoon. The grant which is present-day value terms, has to be spread over the initial 16 years of the 30-year concession period, according to the proposal submitted by Welspun. The consortium consists of Welspun Infratech, Welspun Corp and Leighton Contractors (India).“The financial bid and the numbers stated are subject to responsiveness check and financial evaluation by the Project Advisors, World Bank-group firm International Finance Corporation (IFC),’’ CEO and MD VISL A S Suresh Babu said. IFC will study the proposal and submit its recommendation to the the Empowered Committee headed by the Chief Secretary. Finally, it is the State Cabinet that has to take a decision on whether to award the contract to Welspun or go in for fresh tenders. Since Welspun is the only bidder for the project, rejecting its proposal could mean going in for global tenders for a fourth time. The port operators are expected to pitch in with Rs 970 crore in Phase I.Welspun was left as the sole bidder for the project whose Phase I will cost Rs 4,010 crore after the Home Ministry denied clearance to Mundra Ports and SEZ. VISL officials, joint secretary Ports, VISL COO Jayashankar Prasad, Welspun and IFC representatives were present.