PANAJI: The River Princess Hatao Manch (RPHM) is expected to drop its offer to remove the grounded River Princess from Sinquerim beach.

The Calangute MLA had made the offer on behalf of RPHM at a meeting of the Goa State Disaster Management Authority (GSDMA) last month.

When contacted, Fernandes said he was yet to receive the letter. "I've not received the letter. I will be able to make a comment only after I read it," he said.

Government sources said that if RPHM pulls out, GSDMA will have to decide between Titan Salvage and Madgavkar Salvage, or issue a fresh tender. "The open tendering process for which Titan and Madgavkar had bid is flawed. This was pointed out by the latter. Rather than face legal trouble, it maybe a better option to float a new tender," sources said.

Time, however, is running out for the government as the high court of Bombay at Goa, has asked it to commence work by November 7, 2010. "If we issue a new tender, we may get no takers as the time is too short for companies to undertake a survey and start work by November 7," sources said.

Meanwhile, the Travel and Tourism Association of Goa (TTAG) is livid at the government's failure to remove the vessel. "We are pushing our luck. If it disintegrates further, it will be more difficult to get the vessel out of there," TTAG spokesperson Ralph de Sousa said.