The Hindu Business Line : Lanco revokes Vizhinjam offer

The prospect of the much-delayed international container transshipment terminal at Vizhinjam fructifying in the near future has diminished further with the consortium led by the Hyderabad-based Lanco Kondapalli Power Ltd withdrawing from the fray.

The consortium has written to the State Government saying that it was revoking its offer to take up the development of the Rs 5,300-crore project, according to Government sources.

It may be recalled that the State Government had earlier awarded the tender for the development of the terminal to the Lanco Kondapalli consortium, rejecting the bid submitted by the Mumbai-based Zoom Developers. However, the Government decision was challenged by Zoom Developers in the High Court and later in the Supreme Court.

Following a directive of the Supreme Court, the State Government had asked Zoom Developers to again submit its technical tender for examination by the Bid Evaluation Committee. The tender was subsequently rejected by the committee, paving the way for Lanco Kondapalli to take up the project. The decision of Lanco to withdraw from the scene comes amid reports that Zoom Developers is planning to again move the court against the rejection of its tender by the evaluation committee.

In its letter to the Government, Lanco Kondapalli stated that it was revoking its offer in the light of the continuing uncertainty over the project, the sources said.

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