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P. Manoj

The weightage formula was rejected by the Board of Trustees of JNPT, which was communicated to the Shipping Ministry for its consideration.

New Delhi , Nov. 5

JAWAHARLAL Nehru Port Trust (JNPT) has shelved a suggestion given by the Ministry of Shipping to adopt a weightage formula for evaluating the bids submitted by private operators for developing a third container terminal at the country's busiest container port.

"The weightage formula for the evaluation of bids has been shelved. Now, the bidder quoting the highest percentage of revenue share to the port trust will get the deal for operating the terminal," a Shipping Ministry official told Business Line.

The Shipping Ministry had earlier suggested a formula to JNPT, which gave a 40 per cent weightage to the technical strength of the bidder and 60 per cent weightage to the price bid for the purpose of evaluating the proposals that are submitted by the private entities.

The weightage formula was rejected by the Board of Trustees of JNPT, which was communicated to the Shipping Ministry for its consideration. "We agree with the views expressed by the Trustees that the evaluation of bids would be very difficult on the basis of the weightage formula suggested by us. The Ministry has accepted the port trust management's submission on not pursuing the weightage formula any further," the official said.

Consequently, there will be no weightage to the technical and financial proposals submitted by the bidders.

The evaluation will be plain and simple.

The bidder quoting the highest quantum of revenue share to the port trust will be awarded the job.

JNPT has also decided to restrict penalties for non-performance of the minimum guaranteed throughput (MGT) clause to 50 per cent of the revenue share to the maximum extent.

"Whatever is deficient in terms of MGT volumes, the operator will have to pay 50 per cent of the revenue gap as penalty," the official said.

As per the MGT clause, the private entity operating the terminal will have to handle 1.4 lakh twenty-foot equivalent units (TEUs) in the first year of operations and touch 1.3 million TEUs in the seventh year.

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