KERALA PORT PROJECT IN DILEMMA OVER INDIA`S APEX COURT RULING

By P. VIJIAN
NEW DELHI, Feb 12 (Bernama) -- India's Supreme Court has ordered the Kerala
state government to reconsider plans to develop Vizhinjam Port whose contract
has been awarded to a consortium involving a leading Malaysian port operator.

Last year, the state government awarded the project to the consortium led by
Hyderabad-based Lanco Kondapalli Power Ltd and Pembinaan Redzai Sdn Bhd, to
develop the deepwater container transshipment terminal port costing about RM4
billion.

The bid evaluation committee rejected the tender due to violations of
provisions in the original bid document and the decision was challenged in court
since last year.

"The letter of intent given to Lanco stands cancelled in view of the apex
court ruling Tuesday. As per Supreme Court's order, we are going to open the
developer's tender documents Thursday.

"It will be decided by the committee within the next 15 days to whom the
project will be awarded to. After evaluation, the letter of intent will be
issued again to who ever wins the bid," Kerala State Ports Minister's private
secretary A G Sashidharan Nair told Bernama Wednesday.

On Tuesday, the Supreme Court upheld the Kerala High Court's judgment and
ordered the Kerala government to consider the financial and technical bids
submitted by the Mumbai-based Zoom within 15 days.

India's apex court also directed that if Zoom's bid was better, then the
contract awarded to Lanco should be cancelled.

Vizhinjam Port is an all-weather port strategically located along the
international shipping line in the southern state of Kerala.

-- BERNAMA