Thiruvananthapuram: Ports Minister Ramachandran Kadannappally has made it clear that the government will not accept the demands made by Adani Ports Limited to extend the contract period by six months to complete the Vizhinjam port project. Mr Kadannappally was replying to an adjournment notice given by Mr M. Vincent of the Congress alleging that both the government and the Adani group were conspiring to delay the Rs 7,525-crore Vizhinjam International Trans-shipment Deepwater Multipurpose Seaport project.
A fine would be levied on Adani as per the contract if the project is delayed beyond the stipulated period, the minister told the Assembly. Mr Kadannappally admitted that the government had received a letter from Adani group seeking an extension of the deadline to complete the project. The government will not accept the company's arguments, including on the damage caused to the two dredgers in the Ockhi cyclone in November last and the shortage of granite for the work.
Mr Kadannappally said the infrastructure work, including rail connectivity and road, was progressing. The shortage of granite also would be sorted out soon, he stated.
Mr Vincent alleged that both the government and the company were conspiring to evade the fine. The company would have to pay Rs 12 lakh per month if they do not complete the work in time, said Mr Vincent. Opposition Leader Ramesh Chennithala said that even before the company submitted the letter seeking extension, the ports minister had said on the floor of the House last month that the project could be delayed due to the damage caused to the equipment and shortage of granite. The penalty cannot be enforced if there was a natural disaster or shortage of raw material. "Is it not an adjustment?" he asked.
Later, UDF members staged a walkout alleging that the government was not taking interest in the project after Speaker P. Sreeramakrishnan denied permission for the motion. As per the agreement signed between M/S Adani Vizhinjam Port Limited and the previous UDF government, the company started the work on December 5, 2015 and the port is scheduled to be completed by December 4, 2019.
