The Rs 4,010-crore Vinzhinjam Seaport Project in southern Kerala is set to be delayed further with the Government deciding to renegotiate the financial bid put up by the sole bidder Welspun Infratech-led consortium that has sought an upfront grant of Rs 480 crore from the State.

“The Cabinet has decided to renegotiate the financial bid with Welspun Infratech. Towards this we have decided to set up a committee comprising Chief Secretary, and Secretaries from the Ports, Expenditure and Law departments,” the Kerala Ports Minister, Mr K. Babu, told PTI by phone from Thiruvananthapuram.

When contacted, Mr Parvez Umrigar, Managing Director of Mumbai-based Welspun Infratech, said he has not heard anything in this regard from the Government since submitting the bid and therefore it is difficult to comment.

The development comes even after IFC, the lead adviser for designing and implementing the transaction, reportedly endorsed Welspun’s demand for the Rs 480-crore grant.

The move is set to further delay the project, which has been in the works since 2003, even though the Minister insisted that this will not delay the project.

Asked specifically whether he is open to renegotiating the bid, Mr Umrigar said, “I don’t have any communication from the Government. I don’t know what the government wants from renegotiating.”

As to what will be the mandate of the proposed panel of secretaries and how soon it will submit the report, the Minister said, “we want them to give the report at the earliest, say by June—July.

“As far the mandate is concerned, we want the price bid to be renegotiated,” Mr Babu said, indicating the Government is not comfortable with the bid, which it had opened on February 7, and seeks an upfront grant of Rs 479.54 crore to be spread over an initial period of 16 years.

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