Vedanta, Abu Dhabi Ports in Race for ₹7 Billion VOC Terminal

Vedanta Ltd and a consortium led by Abu Dhabi Ports Company PJSC have submitted initial bids for a tender issued by V O Chidambaranar Port Authority. The tender involves constructing a container terminal with a capacity of 4 million TEUs in the port’s outer harbor, valued at Rs 7,055.95 crores. This project marks a significant step forward after major port operators opted out, highlighting the government's high-profile initiative.

Vedanta Ltd, the Indian arm of London-listed Vedanta Resources Plc owned by Anil Agarwal, and Abu Dhabi Ports Company PJSC, part of the AD Ports Group, are key contenders. However, there are concerns about their ability to meet technical qualifications and secure the necessary clearances for the project.

Sterlite Ports Ltd, Vedanta's infrastructure division, currently operates an 11-million-ton cargo berth at Visakhapatnam Port, mainly handling coal imports. This limited experience in container terminal operations raises doubts about Vedanta's suitability for the VOC Port project, according to industry sources familiar with the tender process.

Abu Dhabi Ports Company, supported by ADQ, a major holding company in the Middle East, might face security clearance challenges due to its operations at Karachi Port in Pakistan, where it manages a container terminal.

The outcome of this tender will depend on technical evaluations and security considerations. Despite previous setbacks with top port operators opting out, the Government of India is eager to advance this prestigious container terminal project.

News by Rahul Yelligetti