Vizhinjam: Won’t give Adani more time, says government

Threatens to invoke penalty clause if seaport project overshoots deadline

The Kerala government made it clear that it would not accept the plea of of Adani Ports Limited for an extension of the contract for completion of the Vizhinjam international seaport,

The government on Thursday asserted that it would not accept the plea of of Adani Ports Limited for an extension of the contract for completion of the Vizhinjam international seaport, even as the Opposition staged a walkout in the Assembly, alleging that the government had colluded with the private group to delay the ₹7,525-crore project.

Minister for Ports Kadannappally Ramachandran told the House that the government had received a letter from the concessionaire seeking an extension of the contract by six months to make up for the delay caused the damage of two dredgers in Cyclone Ockhi and the shortage of granite for construction of the breakwater.

Replying to the notice for an adjournment motion moved by Congress legislator M. Vincent and others, he said the government did not find the request acceptable and would insist on the 1,460-day contract period. He, however, added that the Adani group had begun efforts to repair the dredgers while the government had taken steps to ensure the supply of granite.

'Panel on it'

The Minister assured the House that the government would invoke the penalty clause in the contract if the project overshot the deadline. “The empowered committee chaired by the Chief Secretary and the Project Implementation Committee are keeping a close tab on the work,” he said.

Moving the motion, Mr. Vincent blamed the government for allowing the project to lag. “Not even 25% of the work has been completed 28 months after the project was launched. There is a possibility that this ambitious project will remain a pipe dream for the State.”

Mr. Vincent also said the land acquisition, preparation of the port city development plan and the rehabilitation package for families to be relocated from the project site were bogged down.

Leader of the Opposition Ramesh Chennithala alleged that the government was sleeping on the project. “It is mysterious that the Minister cited the same reasons for the delay even before the Adani Group submitted its letter. This has given rise to the suspicion that the government is helping the company evade the penalty for delaying the project.”

He said any lag in completing the Vizhinjam seaport would work out to the advantage of the Kolachel port under construction by the Tamil Nadu government with the support of the Centre.

Refuting the charges, Mr. Kadannapally said the government hoped to get the work completed on time. “About 92% of the land has been acquired and handed over, the rehabilitation work is on track and an agreement has been signed with Konkan Railway for rail connectivity”.

The Opposition walked out after the Speaker refused to concede the demand for a discussion on the issue.