VOC Port cancels ₹7,055 crore container terminal bid as both applicants fail to meet technical qualifications.
VO Chidambaranar Port Authority has cancelled the tender for a ₹7,055.95 crore container terminal at its outer harbour after both initial bidders failed to meet technical eligibility. The project aimed to develop a 4 million TEU capacity terminal in Thoothukudi, Tamil Nadu, through private investment.
The port authority cited “administrative reasons” for the cancellation but refrained from detailing the decision. Vedanta and Sharjah-based Premier Science and Technology FZE were the only applicants. Industry sources noted that both firms lacked experience in container terminal operations, leading to disqualification.
Concerns had been raised during the bidding process over unrealistic cost estimates, particularly regarding dredging and breakwater construction, which were prepared by IIT Madras’ NTCPWC. The port’s reliance on a low Viability Gap Funding (VGF) model and a capped support of ₹1,950 crore further discouraged investor participation.
The tender’s collapse is a setback for the government, especially after the project’s foundation was laid by the Prime Minister in February.
Source: ET Infra, Shipping Tribune
