Vizhinjam Agreement

Thiruvananthapuram: Comptroller and Auditor General of India found that Kerala`s interests were not protected in the agreement with Adani Ports and SEZ Private Ltd for the implementation of the Rs7525 crore Vizhinjam International Deepwater Multipurpose Seaport project. In its report on public sector companies for the year ending March 2016, presented to the Assembly on Tuesday, CAG said technical and financial estimates prepared by external consultants had not been reviewed with due diligence, leading to an inflation of cost estimates. The government had asked the company to accelerate the construction of the project in order to meet the December 3 deadline. The company has an additional three months` grace period to complete the project. However, reports indicated that the odds seem bleak. In accordance with the concession agreement, if the company does not complete the project during the additional period, it must pay the amount of compensation mentioned in the contract. Representatives of the Latin Catholic Church met again today with Prime Minister Oommen Chandy amid the fishing community`s fears over the vizhinjam deep-sea project, whose approval was assessed two days ago. The agreement with the Adani group, signed under the mandate of the previous UDF government, also contains an additional 20-year extension clause. If this is to be done, the contractors will make an additional gain of Rs 61,095 crore. The 20-year extension clause is also drowned out by law. The GAC report comes on the day that CPI-M veteran and former Prime Minister V S Achuthanandan asked the party-led LDF government for a 「white paper」 on the Vizhinjan port agreement, which was colored during the previous Congress-led UDF government. The CPI-M leader also claimed corruption in the project agreement, whose work was officially launched in December 2015. Under the agreement, the Adani Group was responsible for financing and developing dredging and rectasing 53 hectares of offshore land, building wharves and related infrastructure, and operating the port.

Gautam Adani Ports and Special Economic Zone (APSEZ) has reached an agreement with the Government of Kerala for the construction of the Vizhinjam Seaport Project, worth Rs 7.525 billion. which should be operational in a record time of less than 1,000 days. 「The interests of the Land Government were not sufficiently protected when drawing up the concession contract,」 the report concludes. . . .