Adani Ports and Essar Ports will fight it out for the mega container terminal project at Chennai port.
It will be the biggest port project outside Gujarat for the winner.
While Adani's base is in Mundra, the Essar group has a strong presence in Vadinar and Paradip ports.
The two Indian conglomerates were the only bidders for the Rs 3,700-crore project, designed to handle four million 20-foot containers annually.
Both companies now await security clearance from the Centre, as they had changed names (Mundra Port became Adani Group, while Essar separated its shipping and ports businesses), said Mr Atulya Mishra, Chairman, Chennai Port Trust.
The clearance is expected in a fortnight, he said. After that the bids will be opened and the project will go to the one offering the highest revenue share, he said.
The Chennai Port Trust had rejected Adani's bid, saying its offer of five per cent revenue share was too low.
Adani was then the sole bidder; fresh bidding was opened to invite the seven companies that were active during the qualification stage.
For the proposed ‘build, own and transfer' project, the cost of dredging, floating crafts and navigational aids — estimated at Rs 561 crore — will be borne by the port trust.
The private operator will invest on berth and breakwater construction, reclamation of backup area, handling equipment and other landside infrastructure at a cost of Rs 3,125 crore.
The terminal is to be developed north of the existing Bharathi Dock.
It will have two new breakwaters (total length 4.5 km), and a continuous quay length of 2 km, which will ultimately have 22-metre alongside depth to handle ultra-large container ships of over 15,000 20-foot equivalent unit capacity and 400 metres long.