The decision comes days after Union Minister Nitin Gadkari cautioned that the project might be moved to Tamil Nadu if political differences over awarding the contract to Adani group were not resolved fast.
"State Cabinet decided in-principle to accept the recommendation of Vizhinjam International Seaport Ltd to award the contract to Adani Ports," Chief Minister Oommen Chandy told reporters here.
Further steps such as signing of agreement would be taken subject to the approval from Chief Election Commission as model code was in force in the district in view of the assembly by-election in Aruvikara segment on June 27, he said.
"It will be a gift from Congress-led UDF government to the people on the state's birthday," Babu added.
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The port was first proposed in 1991 when late Congress leader K Karunakaran was the Chief Minister but did not materialise due to various reasons. It got a push after the present UDF government came to power in 2011.
LDF had objected to implementing the project in private sector and had leveled allegations of corruption in the deal.
In a bid to address its concerns, the government held an all-party meeting on June 3 and gave a detailed presentation.
The government had then indicated the project would be awarded to Adani as they were the sole bidder.
Chandy today rejected the Opposition charges and asserted that "the project will be implemented at any cost. The government is of the view that if it is not now, the project will be lost for state.
"Expertise and experience of Aadani Group in building and operating port was also considered by the Cabinet while taking the decision," he said.