CPI(M) Polit Bureau member M.A. Baby has demanded a CIAL-model PPP or retendering instead of giving the Vizhinjam International Multi-Purpose Seaport project on a platter to the private multi-port operator Adani Ports and Special Economic Zone Ltd. (APSEZ).
In a Facebook post, the former Minister said more clarity was needed on property development as the bidders had demanded more land.
The second aspect was who would undertake maintenance dredging, if needed, for the seaport.
In Vallarpadam, the task had been assigned to the Cochin Port Trust by the private operator Dubai Ports. Mr. Baby said this had become a big liability for the port trust.
The CPI(M) leader said the APSEZ had 16 dredgers which did not have adequate work. Will it use them and will the State have to pay for them?
Clarity was needed on many issues and the details of the bid should be made public soon. The details submitted by the lone bidder were yet to be revealed by VISL officials.
The estimated cost of Phase I of the Mission 676 project was Rs.7,525 crore. The Adani group would invest Rs.2,454 crore and the State Rs.4,253.2 crore.
The Centre and the State would pump in Rs.817.8 crore each for the 40 per cent Viability Gap Funding (VGP) that is to be equally shared. After 40 years, when the seaport project became profitable, the port operator would return the money to the government.
The Ahmedabad-based group, investing only 32.6 per cent of the cost, would have full control of the seaport.
“The State will get the benefit if the project becomes profitable after 60 years. If true, the figures are shocking,” the CPI(M) leader has noted.