Former Planning Commission Principal Adviser (Infrastructure) Gajendra Haldea, who authored the draft agreement of the Vizhinjam International Multipurpose Deepwater Seaport, has termed the Comptroller and Auditor General (CAG) report on the project “flawed and misguided.”
“The findings of the CAG will fall apart upon detailed examination. I do not assign much importance to them,” he said during an interaction with The Hindu on the sidelines of a function organised by the Confederation of Indian Industry (CII) here on Monday.
Among the alleged unfavourable provisions in the project that were listed by the CAG in its report is the granting of an additional concession period of 10 years, which increased the concession period to 40 years, thereby providing Adani Ports and SEZ Pvt. Ltd., the concessionaire, the opportunity to collect an additional revenue of ₹29,217 crore.
The report had stated that the standard concession period for public-private participation (PPP) projects is 30 years.
Concession period
“The concession period had been fixed as 40 years in accordance with the Model Concession Agreement published by the Central government. The provisions of the project agreement had neither been altered at any point of time nor was any alteration contemplated. The period had been fixed to 40 years right from the initial stage of deliberations,” Mr. Haldea said.
According to him, the ₹7,525-crore seaport project will drive the growth of the region and ensure income and employment generation for numerous people. The concessionaire has ensured that the ongoing works progressed in full swing. The State government has extended all possible support for the project.
Delivering the keynote address on the topic ‘Private Investment in Kerala Infrastructure’ at the programme, Mr. Haldea commended the previous government for having firmly supported the project.
“The Vizhinjam project would not have seen the light of day without the support of the Chief Minister and the Minister for Ports,” he said.
Mr. Haldea, who is credited with playing an instrumental role in over 300 major projects undertaken across the country in PPP mode, pointed out that the reliance on private investments for such endeavours was inevitable. According to him, several challenges created an adverse perception regarding PPP projects among various sections. These included the lack of trust among investors in the ability of governments to honour contracts, the risk aversion among bureaucracies and their lack of willingness to embrace change, and the lack of resources extended for such initiatives.
Partnerships authority
He recommended the formation of a Kerala Partnerships Authority, an empowered inter-department body, to formulate, support and approve PPP projects in the State.
The Finance Department should be made the nodal department for such projects.
Dedicated PPP units should be set up in each department with sufficient resources, he suggested.
