Six consortia of private companies in the reckoning for developing and operating a modern deep-sea port at Karwar in Karnataka, with an investment of more than Rs1,000 crore, are stumped by a decision of the state government to regulate tariffs at the port.
This is the first instance of a maritime state deciding to regulate tariffs at a port being developed with private investments. The Karnataka government will set the upper tariff limit for the Karwar port, allowing private operators the flexibility to levy charges within this frame.
The shortlisted bidders have now sought freedom to set tariffs on their own. “As the Karwar port would require significant investments, development and marketing efforts, we should be allowed the freedom to fix tariffs,” said an executive at Sical Logistics Ltd, who asked not to be named.Sical will be bidding for the project in partnership with Subhash Projects and Marketing Ltd.
The other consortia that are pre-qualified to submit financial bids for the project are Mundra Port and Special Economic Zone Ltd, Hindustan Infrastructure Projects and Engineering Pvt. Ltd along with Pembinaan Redzai Sdn Bhd of Malaysia, Apollo Infrastructure Projects Finance Co. Ltd with KEI-RSOS Maritime Ltd and North Canara Seaport Pvt. Ltd, and Maytas Infra Ltd with Nagarjuna Construction Holdings Ltd and Kakinada Sea Ports Ltd.