October 19, 2011 12:46:48 am
*Sole bidder seeks VGF of Rs 500 cr,which is govts estimated cost of project
The state governments ambitious plan to turn decommissioned aircraft carrier IMS (Indian Museum Ship) Vikrant into a national maritime museum riding on the ships immense emotive value for her role in the 1971 war has,once again,reached a dead end.
While one of two bidders in the fray for the public-private partnership (PPP) project opted out at the penultimate stage,the solitary bid by Ackruti City projected a steep viability gap fund (VGF) of Rs 500 crore. That is almost the state governments estimated total project cost in 2010 and officials said there could be no justification for the government to undertake a PPP project involving such a large grant.
An earlier round of bidding had ended in April 2010 with a no-show by five private developers after the government decided not to extend the last dates for bid submission.
The reason for the latest debacle,revealed officials,is that the government deleted a key revenue stream at the stage when the bids were already in and were in the technical evaluation stage. Helicopter services,including joyrides a key component of the states feasibility analysis for the project had to be removed from the project design even though the final two bids were in. The decision was at the insistence of the Navy that chopper operations could not be permitted from the flight deck of Vikrant, said a senior government official.
One of two bidders was Aamby Valley,which had participated aggressively for the obvious reason that its parent company the Sahara group having exited from the airline business was keen to use its existing aviation industry assets,including helicopters. It was also keen to forge a chopper route to Aamby Valley from South Mumbai for owners of chalets and luxury holiday homes there.
Though the committee overseeing the design of the project and the bid documents included a Naval representative,the Indian Navy reportedly took the stand at the final stage that helicopter operations could not be permitted they would clash with operations from INS Shikra,the Navys helicopter base nearby. While officials briefly courted the idea of instead offering the museums visitors chopper rides from Shikra,that idea too had to be abandoned as a seaside entry into Shikra was considered a security hazard and the option of resettling large slums to permit entry from another end was deemed unfeasible.
With helicopter operations ruled out,Aamby Valley expectedly opted out.
The idea was that the commercial segments would cross-subsidise the cost of grouting the ship at Oyster Rock,stabilising her,etc. The VGF was to have provided for any further gap in the cost of basic works,that gap can hardly be Rs 500 crore, said the official.
While the government is yet to take a formal decision on Ackrutis bid,officials said it cannot be accepted at the current VGF. Retendering may be an option,but without revenue from helicopter operations,the state governments own feasibility study will have to be overhauled.
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