The Hindu Business Line : TIDCO to re-tender proposed winery project at Dindigul

THE Tamil Nadu Industrial Development Corporation (TIDCO) will soon re-tender the winery project proposed to come up at Dindigul, according to sources.

Over 25 bidders had participated in the tender called by TIDCO earlier this year to identify a private promoter for the project. However, due to certain technicalities, the tender could not be acted upon since none of the bidders qualified under the eligibility criteria framed earlier.

The international consultants, A.F. Ferguson & Co, have appropriately changed the bid document, sources said.

Under the earlier bid the eligibility criteria called for bidders to have a presence in the wine industry. However, this restricted the number of potential investors and there was not sufficient time for the others to enter into firm tie-ups with existing players.

Therefore, TIDCO has given the required breathing space, and is now set to re-tender the project. While a presence in the wine industry is an added point in a bidder's favour, it is not an essential qualification, sources said.

The unit is expected to come up at Nilakottai, Dindigul district, where over 280 acres land have been earmarked for the project. The land is available with the State Industries Promotion Corporation of Tamil Nadu. TIDCO is likely to take equity in the project, which aims to help the grape growers in the region with an assured market, sources said.

The Government passed an order last year granting permission for establishing an integrated distillery, grape wine and spirits unit in the district. The unit is expected to source the raw materials from the vicinity, particularly Cumbum Valley and Theni district. Over 4,000 small farmers cultivate about 90,000 tonnes of Muscat grapes in an area of about 4,500 acres. They now depend on traders to market their produce, a small part of which is exported.

The tendering process will be speeded up with the objective of expediting the project. The private promoter will have to conceive, implement and operate the production facility, build and run a cold storage and handle procurement of raw material. Also envisaged are development of new varieties of grapes, organic cultivation and technical collaboration as needed.

The move is a long pending demand of the grape growers in Theni and Cumbum Valley, who had been hoping for an assured market for their produce.

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