Kuala Lumpur: India's state-owned Ircon International's bid for a mega project in Malaysia appears in jeopardy, with the contract more likely to go to a local consortium, a business weekly reported.

Ircon International, a construction arm of Indian Railways, along with China Railway Engineering Corp (CREC), had appeared assured of landing the contract for a multi-billion Dollar rail project under separate government-to-government deals to offset palm oil sales from Malaysia. Both companies, who had earlier received a Letter of Intent (LoI) and had revised the bids, were still waiting to hear the outcome.

'The Edge' weekly magazine said in its latest edition that the local consortium, made up of Malaysia Mining Corp and Gamuda, which lodged a belated surprise bid to build the entire track, will walk off with the deal.

"The government is leaning towards the consortium for what is being billed the biggest-ever construction project in this country," said the weekly quoting sources saying.

MMC-Gamuda has briefed senior government officials and will soon submit a final proposal to the Economic Planning Unit in the Prime Minister's Department with all the details, including the mode of financing for the project, said the weekly.

MMC is controlled by Syed Mokhtar al Bukhary, a Malay tycoon who has been favoured with several large contracts in the last couple of years and has targeted transport infrastructure and logistics as key areas of business. A government announcement is expected to be made by mid-August, said the weekly.

PTI