Kerala govt decides to award Vizhinjam project to Adani group

Thiruvananthapuram

The Kerala government today decided to award the Rs 7,500-crore port project at Vizhinjam to Adani group, overruling stiff political opposition.

The decision comes days after Union Minister Nitin Gadkari cautioned that the project might be moved to Tamil Nadu if political differences over awarding the contract to Adani group were not resolved fast.

“State Cabinet decided in-principle to accept the recommendation of Vizhinjam International Seaport Ltd to award the contract to Adani Ports,” Chief Minister Oommen Chandy told reporters here.

Further steps such as signing of agreement would be taken subject to the approval from Chief Election Commission as model code was in force in the district in view of the assembly by-election in Aruvikara segment on June 27, he said.

Also present, state Port Minister K Babu said construction work on the project would begin on November 1, Kerala Foundation Day.

“It will be a gift from Congress-led UDF government to the people on the state’s birthday,” Babu added.

The port was first proposed in 1991 when late Congress leader K Karunakaran was the Chief Minister but did not materialise due to various reasons. It got a push after the present UDF government came to power in 2011.

LDF had objected to implementing the project in private sector and had leveled allegations of corruption in the deal.

In a bid to address its concerns, the government held an all-party meeting on June 3 and gave a detailed presentation.

However, the meeting failed to reach a consensus as Left parties stuck to their reservations over awarding the contract to Adani and wanted it to be implemented in the public sector.

The government had then indicated the project would be awarded to Adani as they were the sole bidder.

Chandy today rejected the Opposition charges and asserted that “the project will be implemented at any cost. The government is of the view that if it is not now, the project will be lost for state.

“Expertise and experience of Aadani Group in building and operating port was also considered by the Cabinet while taking the decision,” he said.

Kerala had lost several things due to the attitude of LDF and “this government will not allow that to happen again in the case of Vizhinjam, a dream project of state,” he added.

“All things are done in a very transparent manner, keeping the interest of the state in mind,” Babu said.

All documents, including the tender bid of Adani, would be made available on (government) website, he added.

Only Adani Port bid for the project when the last date for submitting the tender for bidding ended on April 25.

The project, estimated to cost about Rs 7,500 crore, is planned as a Landlord-PPP model.

The construction of superstructure, dredging, reclamation and procuring of equipment is the PPP part with an estimated cost of Rs 4,089 crore.

The contract is for building port superstructure and operate the port for a period of 40 years, including four years of construction.

The port, when completed, would have the capacity to berth 18,000 TEU mother ships.

PTI