Communist Party of India (Marxist) [CPI(M)] State unit secretary Kodiyeri Balakrishnan has said that dubious motives have impelled the State government to contract the Adani group to construct the Vizhinjam port.
In a statement here on Sunday, Mr. Balakrishnan said the deal smacked of unabashed betrayal of larger public interest for the benefit of a private company.
For an investment of less than 32.6 per cent of the total project cost (an estimated Rs.7,550 crore), the Adani group had won the bid to build and operate the port for 20 years.
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The State, which was the biggest investor, stood to gain next to nothing during the period.
The Left Democratic Front (LDF) government, which mooted the proposal in 2006, had envisaged that the port should remain in State hands.
Only its operations would be outsourced to private parties on a contract basis and through a transparent process of competitive bidding.
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One firm had agreed to pay the government an estimated Rs.115 crore plus a substantial share in profits to construct and operate the project.
However, the UPA government thwarted the project by refusing to give security clearance to the bidder. Consequently, litigations hampered the project.
In 2013, Chief Minister Oommen Chandy “slyly” restructured the project to a private public partner ship model, which was loaded in favour of big multi-nationals. Mr. Kodiyeri said Mr. Chandy did not deem it necessary to discuss the matter in the Cabinet.
He said the Chief Minister portrayed the project as inherently a loss-making one and awarded the contract to the Adani group on the terms set by the firm. The bid was awarded following secret discussions. Other bidders were turned away.
Original plan
Moreover, the port’s original plan was minimised to suit the group’s interests. The dimensions of the breakwater, approach channel, port basin, and turning circle were drastically reduced in the new contract.
The 300-acre land surrounding the port was handed over to the group to develop at their own will.
The Centre’s warning that the port would be shifted to Tamil Nadu was mere scaremongering to give the Adani group an advantage in its negotiations with the government.
The CPI(M) was oath-bound to see the project through. It was also committed to protecting the State’s interests, he said.
‘Adani to invest 32%, operate
for 20 years’
Says State will gain nothing in these years