The concession agreement for the development of the Beypore port is expected to be signed in August 2005 with the Kerala Ports Department and the Kozhikode-based Parisons group.

The Parisons group has already submitted the techno-economic bid prepared the bid in association with PriceWaterhouseCoopers, while the Ports Department has roped in IL&FS to draft the concession agreement.

According to sources in the Ports Department, a special purpose vehicle (SPV) with equity participation of the Government, is likely to be formed for implementing the project.

The port is to be developed on BOT basis and the agreement is likely to be for 30 years. The government's revenue will be fixed after arriving at the potential traffic at the port.

The total cost of the project was earlier estimated at Rs.500 crore. This has since been scaled down to Rs.200 crore, with the Phase I costing Rs.35 crore. This phase will involve increasing the length of the existing berth and deepening the draft.

Meanwhile, the Sharjah-based Universal Lubricants has submitted a proposal for the development of the Azhikkal port. The cost of the project has been scaled down from the originally estimated Rs.1,200 crore, and the development is now planned to be taken up in modules.

Also See:

IL&FS to review Beypore port in Kerala (22-Jul-04)

Shipping Infrastructure in Kerala: A special study by ProjectsToday (June 2005) [PDF format]