Kerala approves additional deal with Adani for Vizhinjam international port

The cabinet authorized the state government to enter into a supplementary concession agreement with Adani Vizhinjam Port Private Limited for the Vizhinjam International Port project. According to the proposed deal, the state will extend the project’s timeline by five years to account for delays caused by Covid and natural catastrophes like Ockhi and floods.

The second and last phase of the Vizhinjam port, which was supposed to be completed in 2045, will be finished by 2028. Unlike the prior agreement, all phases of the port will be completed by this point. During these phases, Adani Port would invest Rs 10,000 crore over the next four years. Once the project is done, the port’s minimum capacity will be 30 lakh TEU.

According to the draft agreement, the state will punish the concessionaire for Rs 43.8 crore for delaying the project. Earlier, the state wanted a fine of Rs 219 crore for the delay. The remaining cash will be deferred until 2028. If the project cannot be finished by 2028, the five-year contract extension will be revoked. The government will also reclaim the sum withheld, according to the plan. The agreement was required following the withdrawal of the arbitration proceedings. The cabinet adopted the supplemental agreement after consulting the Law Department and the Advocate General.

The cabinet has requested that the Justice C N Ramachandran Nair Commission, which was constituted to find a lasting solution to the Munambam ownership question, deliver its report within three months. The government has delegated responsibility for preparing things for the judicial commission’s consideration to the Chief Secretary. The Ernakulam District Collector has been tasked with setting up the commission’s office and other amenities on schedule.

The group was also determined to take immediate action to trace the dependents of those killed in the Nattika road disaster. Additional steps to locate dependents and give financial help will be conducted at the Chief Minister level. The meeting voted to provide a monthly travel stipend of Rs 500 to members of Community Development Societies, with the exception of the CDS chairperson.

The soil dredged from the part of the Vembanad Lake that falls under the National Waterway will be provided to the National Highways Authority for free in order to build National Highway 66 in the public’s interest.

 This plunder will be free from royalty and seniority charges under certain conditions. It has also been resolved to ask the National Highways Authority to look into whether this amount can be subtracted from the cost of road development.