The Kerala Government has again floated tender inviting private partners for the development of Azhikkal port in North Kerala through public-private partnership (PPP) route.
two modules
The port, this time, is proposed to be developed in two modules; the setting up of a multi-purpose terminal for handling general cargo and a separate terminal for handling cement products and related cargo. The total cost of the project is estimated around Rs 150 crore.
special purpose vehicle
A special purpose vehicle (SPV) will be formed for the implementation of the project on design, build, operate and transfer (DBOT) basis and the concession period will be 30 years.
The State Government's investment in the project will be Rs. 20.6 crore in the form of land and the existing assets, according to Port Department officials.
A total of 85 acres of land has been earmarked for the development of the river-based project.
Coastal shipping
Of this, 65 acres will be utilised for the multi-purpose terminal and the remaining 20 acres for the cement terminal.
The Azhikkal port has a prime place in the coastal shipping plan of the State Government.
It may be noted that the Government had floated a tender last year seeking a private partner and Mundra Port was the lone bidder.
Interestingly, against the Government's estimated project cost of around Rs 1,700 crore, Mundra Port had submitted a proposal for Rs. 3,000 crore..
Mundra Port
Mundra Port had evinced interest in the project keeping in mind the Government's intention to establish a coal-based thermal project in the region, requiring import of coal through the port.
But once the Government decided against the thermal project, Mundra Port withdrew from the scene.
The Government had subsequently asked the consultant, Deloitte India, to revise the detailed project report and the new tender now floated is learnt to be based on the revised report.
There is also a proposal for setting up a ship-repairing facility near the port and a team from Cochin Shipyard had visited the site some time back to examine the feasibility of the proposal.