Cabotage exemption to upcoming Vizhinjam Port

Union Shipping Minister Nitin Gadkari today announced cabotage exemption to upcoming Vizhinjam International Seaport for which the foundation stone was laid here this evening by Chief Minister Oommen Chandy.
Addressing the gathering after the ceremonial groundbreaking for the Rs 7,525 crore first phase of the multipurpose port here, Gadkari said, "Effective today we have decided to exempt the Vizhinjam port from the controversial cabotage law. An order to this effect will be issued in a fortnight."
But the minister did not speak about a likely exemption for the other existing ports.
This is the first major port project getting such an exemption even before the work on it has begun.

The country's first international transshipment terminal at Vallarpadom near Kochi got such a relaxation only for three years beginning September 2012. The terminal, being operated by state-run Kochi port along with the Dubai-based DP World was commissioned in February 2011. The three year exemption ended in September this year.
For Kerala, this is a dream come true for the state, after 25 years of the idea being mooted by the late Congress chief minister K Karunakaran in 1991.

For a state known for its militant labour unions and anti-capitalist sentiment this is the single largest investment in an infrastructure project. And according to the chief minister this is the beginning of a new chapter in its history.

CPI-M-led Left Democratic Front Opposition kept away from the function protesting corruption charges against the chief minister and ports and fisheries minister K Babu, in the Solar and Bar scams respectively. LDF had also opposed certain terms and conditions of the construction agreement holding that they were not favourable to the state.
Addressing the gathering, Adani group chairam Gautam Adani said his experience in working with the state administration has been exemplary.
The company will complete the work in 1000 days, he said and also announced a Rs 35 crore rehabilitation package for the local people who had given up their land by extending educational facilities, water and sanitation.

Chandy sought LDF's cooperation for the early completion of the project and urged the front "not to mix development with politics."
The Gautam Adani-led Adani Ports and Special Economic
Zone (APSEZ) on August 17 signed an agreement with Kerala to build this port, which will be a transshipment terminal, and operate it for 40 years.
While 50 per cent of the project cost will be borne by the state to the tune of close to Rs 4000 crore, this is the first port to have got 20 per cent viability gap funding from the Central government to the tune of Rs 800 crore.

The four-phase development will see the port attaining three million TEUs capacity on completion, while the first phase to be completed by September 2018 will have a capacity of one million TEUs.
This will be the second international transshipment terminal in the country after Kochi, which was inaugurated in 2010. The Kochi project is running at low capacity.
In the last three decades, neighbouring Sri Lanka has been able to establish a regional dominance in transshipment with the Colombo port, which even supports the Indian trade.
Vizhinjam port is planned as an alternative for the same. Gadkari had threatened to take the project to Tamil Nadu at one point, saying political opposition should not hinder economic agenda.

The company had committed to complete the work and make the port operational in a record time of less than 1,000 days. The company began work on the project in 110 days instead of the 270 days it could have taken.
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"If anyone is staying away due to some misunderstanding, let us keep those differences aside for the development strides of the state," Chandy said, promising that all matters related to Vizhinjam project would be transparent.
He said if Vizhinjam had not been in Kerala, it would have been a reality 25 years ago.
Besides the announced packages, the government was prepared to extend all possible steps for the rehabilitation of the locals, especially the fishermen, whose livelihood will be affected.

The Vizhinjam port project was first conceived during the time of K Karunakaran as Chief Minister. M V Raghavan was the then port minister, Chandy said.
Chandy also added that the Vizhinjam seaport project is expected to be completed by 2018.
Though the ambitious project had delayed due to various reasons in the years, it got a fillip after the present UDF government came to power in 2011.
During his address, Port minister K Babu asked Gadkari to sanction rail connectivity and community development projects in connection with the Vizhinjam port under the 'Sagarmala' project of the Centre.
He also urged the Centre to provide sufficient funds for the construction of a flyover connecting Vizhinjam port to Karamana-Kaliyikkavila highway.