The Kerala State Cabinet on Wednesday decided to accept the sole bid submitted by the private multi-port operator Adani Ports and Special Economic Zone Ltd. (APSEZ) to build the port superstructure and operate the Vizhinjam International Multi-Purpose Seaport.
A formal announcement in this regard is to be made by the government after seeking the permission of Election Commission in view of the Code of Conduct that is in force for the June 27 by-election to the Aruvikkara assembly constituency in the capital district, official sources told The Hindu .
The Cabinet that met on May 20 had deferred the decision and decided to hold an all-party meeting before going ahead with the project in view of the Opposition by the Left Democratic Front to the project being taken in PPP mode and allegations of corruption over the acquistion of land. The board of Vizhinjam International Seaport Limited (VISL), special purpose vehicle set up to execute the project, and the five-member Empowered Committee headed by the Chief Secretary had recommended the bid of the Ahmedabad-based APSEZ.
The port operator has sought Rs.1,635 crore as grant for the project partnering the State. The Phase I of the project is estimated to cost Rs.7,525 crore, of which the Public-Private Partnership part is Rs.4,089 crore. Of the Rs.4,089 crore, 40 per cent will be the VGF share of the Centre and the State government.
