Petronet LNG, the promoters of the venture, was close to finalise the list of qualified bidders and would invite the final bid in a couple of months, sources close to the developments told The Financial Express.Petronet LNG, promoted by a consortium of `navratna' hydrocarbon majors, has recently decided to change the tack and go in for private participation for developing the Kochi terminal. The pipeline company had recently floated global pre-qualification tenders for setting up the Kochi project on a BOOT basis. Earlier, Petronet was planning to set up the project alone and had floated pre-qualification bids for EPC contractors.

Sources said among the companies in the race are the Ambanis-owned Reliance Industries, Indian construction giant Larsen and Tubro, Japanese majors Mitsui and Nissho. "A total of nine companies have submitted their pre-qualification bids," sources said. "Petronet will award the project to the BOOT contractor by January 2001 and the project is expected to go on stream by end 2004," the source said.

The successful BOOT contractor will get 25 years in a stretch to own and operate the project. According to the blueprint prepared by Petronet LNG, the private promoter will have to take up the responsibility of setting up the mega high-tech venture from scratch.

The responsibilities of the BOOT contractor include building, manning and operating the project till the regassified LNG reaches the transportation pipeline. They would also have to raise necessary finance to fund the project, the source said. After the expiry of 25 years BOOT period, the project will revert to Petronet LNG, the promoters of the venture.

Talks between Petronet LNG and the Cochin Port Trust for leasing 50 hectares of land for a stretch of 30 years to the former for setting up the LNG project was in an advanced stage, sources said. Both the sides had held several rounds of discussions and a final tariff for the land would be worked out soon.

Petronet had recently appointed Gas Authority of India Ltd (Gail) as the sole agency to transport the regassified LNG from the project to the end-user point. Gail had announced its plan to lay a 800-km pipeline to evacuate gas from the project to the length and breadth of the State at an estimated investment of Rs 600 crore initially. Gail and BPCL will market the gas either as a team or individually.