Hiranandani sole FSRU bidder for Kolkata

Vol 18, PW 15 (26 Mar 15) News in Brief

Ambitious plans to set up a 4m t/y capacity FSRU off Kolkata have been given a huge thumbs-down with only Mumbai-based Hiranandani Group subsidiary H-Energy bidding by the March 16 deadline.

Other companies such as Chennai-headquartered IMC, Exmar of Belgium, Delhi-based Alar Impex, Teekay Shipping, and Japanese trader Marubeni bought tender documents and were expected to bid but stayed away. "Hiranandani always had an edge," says a bidder who stayed away.

“It spent crores of rupees on a DFR and gas demand studies.” In November 2013, project-promoter Kolkata Port Trust asked Hiranandani to set up the FSRU without going to tender, triggering fears of a corruption inquiry leading to the present open global tender.

“This is the second time we’re proposing this project,” says a Kolkata Port source. “Now we can issue a LoA to Hiranandani even if it was sole bidder.

” He adds Hiranandani will have 48 months to execute the estimated Rs5000 ($800m) project.