"This would help the tender procedure for the project," Kerala port minister K Babu said. "Out of the five companies, whose bids qualified , three are willing to go ahead with financial bids. Now the bidding process can be expediated in a week or two," he added.
Earlier, the empowered institution under the Union finance ministry had given in-principle clearance to Vizhinjam port's VGF application. Rajiv Mehrishi, secretary, ministry of finance, had called a meeting of Kerala chief secretary Bharat Bhushan, principal secretary Ports James Varghese and Vizhinjam International Seaport (VISL) managing director AS Suresh Babu in Delhi on Wednesday to finalise the details of the VGF assistance.
The port development is proposed to follow the landlord port model. Accordingly, the dredging, reclamation and basic external infrastructure work like construction of break-water and quay wall will be taken up by VISL.
The proposed Vizhinjam seaport is an all-weather port located on theSouthern tip of India, just 10-12 nautical miles from the busy Persian Gulf- Malacca shipping lanes which carry almost a third of the world shipping traffic. The proposed site is endowed with natural depth of more than 20 m as close as one nautical mile from the coast. This means that the dredging and maintenence costs will be minimal.