The Board of Trustees of Jawaharlal Nehru Port on Wednesday approved the bid of PSA of Singapore for developing a fourth container terminal.
The Singapore-based global port operator became the top bidder for the US$1.288 billion project after it offered to share 35.79 percent of the revenue to the government in the auction held last week, reported The Hindu.
Contracts for port projects under the public-private partnership scheme are awarded to the bidder willing to offer the highest revenue share.
"We have issued the letter of award (of the project) to PSA today," said N N Kumar, chairman, JNPT, after the board meeting on Wednesday. "PSA will have to acknowledge the letter of award within seven days and sign the concession agreement within 30 days," Kumar said .
In 2011, the same project was awarded to a consortium of PSA of Singapore and ABG Ports in India, after they offered to share 50.828 per cent of the revenue with the government.
However, the bidder refused to sign the concession agreement. After waiting for a year, JNPT terminated the letter of award to PSA and decided to call for fresh bids.
The terminal, with a designed capacity to handle 4.8 million standard containers annually on completion, will double the current capacity of JN port, the country's biggest container port.
This is the largest port project with 100 percent foreign direct investment.
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