Opposition stand on Vizhinjam sea port is shocking, says Chandy

The opposition parties mainly CPI[M] had alleged Rs 6,000 crore scam in the project

Kerala chief minister Oommen Chandy today termed the corruption allegation levelled by the opposition parties against the government on the Vizhinjam International seaport project as shocking. In a statement here, released on the penultimate day of the all-party meeting scheduled on Wednesday, he said if the government failed to implement the project now,  it would never be a reality.

The opposition parties, mainly the CPI(M), had alleged a Rs 6,000-crore scam in the project. CPI(M) politburo member Pinarayi Vijayan alleged the Congress government was trying to hand over land worth Rs 6,000 crore to the Adani Group.

Chandy said his government had included more conditions in the contract that will benefit the state exchequer. According to the revised conditions, revenue would be shared with the government from the seventh year of operation and the same will be increased one per cent each year from the 15th year. Ultimately, the state will get a maximum of 40 per cent revenues of the port.

The chief minister said the LDF government had appointed International Finance Corporation (IFC) as advisers to the project and approved the landlord model for implementing it. But it never convened all-party meet to discuss the conditions. He alleged that there was no transparency in the project during the LDF period.  Under the rules framed by them, the state’s revenue share was to come from the 30th year.

He said the terms and conditions of the contract had been uploaded on the website of Vizhinjam International Seaport Limited (VISL), the SPV for the project, to ensure transparency. The government had acquired 206 acres of land for the project, including 36 acres acquired during the period of the former government. A total of Rs 530 crore had been spent for this. “The total estimated cost of the project is Rs 7,525 crore. The corruption allegation is of Rs 6,000 crore. The Opposition statement is just for the sake of opposing,” the chief minister said.

The director board of VISL and the empowered committee for infra projects had approved the lone bid submitted by Adani Ports. Though it was expected that the government would give the final clearance in  the Cabinet meeting on May 21, it was decided to convene an all-party meeting to discuss the  issues. The meeting is scheduled on Wednesday.