Mormugao Port Trust, Goa, INDIA BOT Port Projects/RFQ
Government of India
M inistry of Shipping, Road Transport and Highways
Department of Shipping
Transport Bhawan, 1,
No. 1'()-120D/2/200S-JNPT th
Dated 26 September, 2007
.J awaharlal Nehru Port Trust, Sh
va, Tal. Uran,
Navi M Ufllbai-400707
IKilld ,\tlelllion: Shri S.M . Kulkarni, Chief M anager (PPD)]
SlIb: :no 1 11 I':xtension of Container Berth towards North of NSICT.
This has l'l:ference to your Letter No. PPD/M -II/330mextn/2007/500 dated 4cl, M ay, :W07 and
Lelter No. PPD/M -II/330mextn/2007/577 dated 21/22nd M ay, 2007 on the above; slIbjc l.
2. ,\ fIeI' consideration, it has been decided that the Jawaharlal Nehru Port Trust (lNP") should gu ahead
for global competitive bidding for an independent stand alone l:onl:,inC'J' I 'rl1linal for the project. The
PorcTrust should clearly state in the tender notice thai die lend '1' may be rejected by the Port Trust
without assigning any, reason. The relevant (;UVCI'nlllenl guidelines and instructions of M inistry of
Finance as forwarded under this i\linislry's Leller NO.PD-240 l5/3/2006-US(I) dated 7.6.2007 should be
strictly complied wilh whil' furmulatin g the RFQ document.
~. The question of eligibility of existing private container terminal operators in the IN Purl 10 compete
and bid for the project has also been examined. As per the Guidelines on Pri";lt . S 'clor Participation in
the M ajor Ports issued by the Department of Shipping in ( cluber, 1996, the Port Trust has to ensure that
private investment does not result in the l'I'c;1l ion of private monopolies, and that private facilities are
available to all users on equal and cornp<.:litive terms.
4. \Vhen the issue of participation of P&O Ports (who were already operating the NSICT in the port) in
the bidding process for the redevelopment of Bulk Terminal to Conlainer Terminal project at Jawaharlal
Nehru Port on BOT basis came up during 2002-03, tll(' l)eparll11 'nt of Shipping, after obtaining the
advice of the M /o Law & Justice, advised .J N 1''1' 10 exclude P&O Ports, its subsidiaries, allied
organizations, etc. from the bidding process fur the said project with a view to avoiding private
monopoly and promoting curnpel il ion. ,\ Writ Petition flied by P&O Ports in the Bombay High Court
against its exclusion was dismissed and the Bombay High Court upheld the exclusion. This was also
subsequently upheld by the Supreme Court. In that case, there was only Ol1e private operator
RFQj'or Coal Tali/iI/at at Port of Mormugao, Goa, INDIA 52 of 59
Mormugao Port Trust, Goa, BOT Port Projects/RFQ
who was excluded from the next bidding p,rocess on BOT basis. In the bidding for the project of
5, In the instant development of the second container terminal at Chennai Port on BOT basis, the same practice was
se while JNPT is in the process of undertaking the bidding for the development of the 330 metres extension
of container berth towards north of NSICT project as a stand alone project on BOT basis (330 metres
extension project), there are two different private BOT operators operating container terminals in IN Port.
As a rational and logical consequence of the stand taken earlier it has been decided that the successful
bidder of the previous container terminal on BOT basis (M aersk A/S- CONCOR Consortium) and/or their
subsidiaries/ allied organizations should be excluded from bidding for the 330 metres extension project.
This would mean that for the next BOT container terminal in IN Port in future, the successful bidder of the
330 metres extension project would be excluded and so on,
6, It has also been decided that the above convention shall be followed in all Ports in its true spirit with a
view to avoid monopoly and promote competition till such time a formal Policy is fInalized and notifIed,
7. You are requested to take further action in the matter accordingly.
(S. T. Vijayaraghavan)
Under Secretary to the Government of India Phone
No.23714324 / Fax No,23328549
E. M ail: firstname.lastname@example.org
Copy ( 0 : - _Chairmen of all M ajor Ports - with the request to take note of the convention and adhere to
instructions at para 6 above.
1\ ,,'() I' " ('(1(1 1 'I '('f "l IIi ll a / at Port of Mormugao, Goa, INDIA 53 of 59