Vizhinjam Port: Kerala government, Adanis to ink pact on August 17, 2015

Source: PTI

Taking a major step forward on the state's ambitious Rs 7,500 crore Vizhinjam deep sea port project, Kerala government and Adani Ports decided to sign the construction agreement on August 17. The decision was taken at a meeting by Chief Minister Oommen Chandy with Adani Ports Officials, including the company's Executive Director Karan Adani. It was also decided to start the construction work on November 1, the state's formation day, Ports Minister K Babu told reporters after the meeting. Karan Adani said that even though the construction period is four years as per the agreement, the company plans to complete the work in two years. Babu said that the CM would write to Prime Minister Narendra Modi on Monday, seeking exemption of cabotage law for the project as it is one of the issues raised by the Adani Group . They also sought completion of land acquisition of which 90 percent is over, he said. "Government assured them that the remaining land required would also be acquired," he added. Vizhinjam International Seaport Private Ltd is the Special Purpose Vehicle of the state government formed to implement the project. The estimated cost of the project is Rs 7,500 crore which includes investments made by the Kerala government. The port, a long pending project of the state, was first proposed in 1991, but did not materialise due to various reasons. It got a push after the present UDF government came to power in 2011. In June this year, the Congress-led UDF government decided to award the project contract to the Adani Group, overruling stiff political opposition. The Opposition CPI(M)-led LDF had objected to it's implementation in the private sector and had levelled allegations of corruptions in the deal.    

July 20, 2015 | 7:46 pm IST.