Instances of not handing over the tender work even after the process is carried out would result in likely losses amounting to several crores of the royalty income at Kandla Port
The tender for Jetty 14 of Kandla Port has not been allotted despite the passing of two years after inviting and qualifying tenders. Without any progress over the last eight months, the term is being extended every fortnight.
Tenders were invited for developing a modern facility at Jetty No. 14 with the condition of Develop Built Operate and Transfer on Public Private Partnership model. After inviting this tender, even after more than two years, the fate of the tender is not known.
Under the Model Concession Agreement, Kandla Port Trust tenderers are required to pay 25 per cent of the cargo handling charges per tonne as royalty. It is alleged that the works of Jetty No. 11 and 12 are given with only 10 per cent royalty. With the delays, it can be estimated that Kandla Port Trust will lose revenue up to Rs. 350 crores in the next years.
People concerned are likening the events at Kandla Port Trust to the weakening of Bharat Sanchar Nigam Limited in the past. Some allege that a situation is being created where the port will be termed an unviable Government enterprise and would slip into the private hands.