West Bengal mulls re-tendering Tajpur port project

Bengal’s chief minister, Mamata Banerjee, has announced plans to seek a fresh legal perspective on the proposed Tajpur port, hinting that the infrastructure project connected to the Adani group might undergo re-tendering. Earlier in 2022, following a competitive bidding process, the state had selected Adani Ports for the Rs 25,000-crore port and industrial zone venture and had granted a letter of intent to India’s largest private sector operator in October of the same year.

However, the Adani group faced allegations of market manipulation and impropriety from US-based short seller Hindenburg in January 2023, leading to a political commotion that overshadowed the Tajpur project. In response to questions about whether the Bengal government would revoke the LoI granted to Adani, Banerjee clarified that they are seeking legal advice on the matter.

During the Bengal Global Business Summit’s seventh edition in November 2023, chief minister Banerjee encouraged investors to participate in developing Tajpur, which was envisioned as an alternative to Bengal’s Haldia and Calcutta ports unable to accommodate large ships due to low river draughts. However, just days later, the Bengal industry minister confirmed that communications with the Adanis were ongoing, implying that the state had yet to annul the contract awarded to Adani through the tender process. The state highlighted that approvals from four Union government departments, including home, external affairs, defense, and shipping, were still pending. The ministry of home affairs had conditionally cleared the project but requested clarifications on certain points.

Meanwhile, Chabahar port experienced a 30% increase in the volume of goods being loaded and unloaded. Cochin Shipyard revealed plans for a Rs 2,000 crore expansion at Cochin port, and the Rs 25,000 crore Maritime Development Fund was seen as a significant step forward. The logistics and industrial sectors have consumed more than 39 million square feet of space, while major ports have recorded a 3.2% upsurge in cargo handling during December.

As uncertainties loom over the fate of the Tajpur port project, Bengal’s government is navigating complex legal and logistical challenges to ensure transparency and accountability in the implementation of crucial infrastructure projects. The need for additional legal advice suggests a commitment to due process and fairness in decision-making, underscoring the significance of upholding ethical standards and regulatory compliance in major industrial ventures. The ongoing developments surrounding the Adani group and the Tajpur port reflect the complexities of public-private partnerships in driving economic growth and development in the region.