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Kerala government to go ahead with Vizhinjam port project

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Press Trust of India Thiruvananthapuram
Last Updated : Jun 03 2015 | 8:28 PM IST
Kerala government today asserted it was committed to going ahead with the delayed multi-crore rupee Vizhinjam International deepwater seaport project here and indicated it would award the work to Adani Ports.
This was stated by Chief Minister Oommen Chandy after an all-party meeting convened by UDF government in the wake of allegations and criticism from different quarters, including CPI-M led LDF Opposition, against the move to accept the tender of the lone bidder Adani Ports and SEZ for the project.
"Government will go ahead with the project because it is of the view that if not now, the project itself would be lost for ever to Kerala. We will not allow that situation to happen," Chandy told reporters here.
Chandy said most of the concerns raised by Leader of the Opposition V S Achuthanandan were not correct. "We have told them that state's interest will be protected and everything will do done in a transparent manner," he added.
There was also a threat that the Rs 7,500-crore project might go to Colachel in Kanyakumari district in neighbouring Tamil Nadu if the project was delayed further, he said.
"We will not allow anybody to delay the project," he added.

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Asked whether the opposition was satisfied with the explanation given by the government, Chandy said "you have to ask this question to the opposition."
Replying to a question, he indicated that contract for the development of the port would be awarded to Adani Ports. "How can the contract be awarded to a company that did not bid for it?" he said adding government would proceed with next process on the issue 'soon'.
The port project, conceived decades ago and considered to be a dream scheme of the state that can give a substantial boost to the economy, has been delayed due to various reasons all these years.
After the present Congress-led UDF government came to power, the project got a fresh lease of life and Board meeting of Vizhinjam Seaport International Ltd (VSIL), the implementing company for the project, and State Empowered Committee had accepted the tender submitted by Adani Ports for the development of the port.
Subsequently, main opposition CPI-M and CPI came out against the government's move to hand over the project to Adani group and also levelled charges of corruption in the deal.
Only Adani Port bidded for the project when the last date for submitting the tender for bidding ended on April 25.
Chandy had held a pre-bid meeting with prospective companies including the Adani Ports.
The contract is for building port superstructure, estimated to cost Rs 7,524 crore and operate the port for a period of 40 years including four years of construction.
The port, when completed, would have a capacity to berth 18,000 TEU mother ships.

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First Published: Jun 03 2015 | 8:28 PM IST

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