Even as the Chandigarh administration is all set to re-invite bids, in early November, for setting up a Modern Terminal Market, officials in the Union Government and private players have expressed their doubts over the attractiveness of the project.

When bids were invited for the first time, around four companies were short-listed but due to steep licence fee only one participated in the bidding process. Later, the tender was cancelled. Now, the Chandigarh administration is all set to re-work the tender and call for new bids.

Officials from the ministry of agriculture though feel that the project may not take off as Chandigarh is not a producer of agricultural commodities and the produce has to come from other states. States may be concerned about the loss of revenue and the private operator may have to get into an agreement with other states to be able to operate, as such agreements are not a part of the tender.

Moreover, the land being offered ‘is in a central location, the market value of which is very high’. According to sources, this high value and attractive location created various interest groups within the Chandigarh administration, which led to the introduction of the licence fee in August. “The administration wants to get revenue back from the use of the land,” said an official. Considering the high value of the land, the Central Government, which subsidises 49 per cent of the project cost, is reluctant to include the land cost in the subsidy.

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