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Karnataka set to award first minor port project

Madhumathi D.S.

BANGALORE, May 28

THE Karnataka Government is said to be close to a decision on awarding its first minor port project to be developed on BOST basis.

The lone bid offer for Tadri near Karwar is set to go before the Cabinet in the coming days, according to the Principal Secretary, Infrastructure, Mr. B.K.Das.

Pending an in-principle clearance being given to the consortium, the award of the project would be formalised during the month-long Global Investors' Meeting starting on June 5, he said.

Simultaneously, the Karnataka State Industrial Investment and Development Corporation (KSIIDC), nodal agency for private promoted infrastructure projects, will begin negotiating the concession agreement with the private promoters.

Before that, the consortium would have to go into a detailed techno-economic feasibility study of the project. The consortium including Hanjin Engineering and Construction of South Korea and Mumbai-based Zoom Developers has sought that KSIIDC take a nomi nal equity share in the port plan. ``This is not a pre-condition and we will take a decision at a later stage,'' the officials told Business Line.

According to Mr. Das, Tadri, 40 km south of Karwar, is to be developed as multi-purpose minor port with about a dozen berths. 1,000 acres of land would be available for storage and other infrastructure.

The consortium is expected to initially put Rs. 750 crores into the project, with investments likely to grow to Rs. 3,000 crores over 20 years.

Based on the projected traffic volumes, a preliminary survey has established the feasibility of the project. A port at Tadri, according to Mr. Das, has become essential, especially for heavy ore shipments from the Sandur-Bellary belt. It is expected to d econgest the New Mangalore port, the intermediary Karwar port and also the over reliance on the Chennai port. Karwar, which is to be the next naval base, would become less accessible.

The Government in 1997 identified nine potential minor ports. Tadri along with Belekeri and Old Mangalore was offered on global tenders in November 1997. It was the only one get any taker and the bid evaluation was completed by RITES around mid-1999.

Mr. Das said good fishing harbours would be developed at the other places -- including Malpe, Bhatkal, Honnavar, Belekeri, Hangarkatta and Kundapur.