The Kerala government will now be required to pay Adani Ports Rs 400 crore as per the terms of the agreement since work on the breakwater at the planned Vizhinjam port is progressing.
When 30% of the breakwater is finished, and they have been pounding on the doors of the government for some time, Kerala will be required to give Adani Ports Rs 400 crore under the agreement between the two.
The state government is unable to uphold its obligation to the port function Object() { [native code] } since they are trapped in a debt trap and have a precarious financial situation. The Pinarayi Vijayan administration has now made the decision to borrow Rs 400 crore from HUDCO due to the limited amount of time left.
Adani Ports was the only bidder for the project, which had been a dream project for several governments before being finally approved by the then-Oommen Chandy administration (2011–16). On December 5, 2015, work commenced.
The first ship was supposed to berth there on September 1, 2018, in a time record of less than 1,000 days, according to Gautam Adani’s announcement at the time. However, due to a number of circumstances, things went awry. The first ship will berth in March 2023, and the port’s first phase will be put into operation in 2023, according to state ports minister Ahamed Devarkovil.
After typhoon Ockhi damaged the project site in 2017 and caused a piece of the built breakwater to be washed away, the project first came to a standstill. Since then, the lack of limestone, the project’s most crucial raw material, has caused more delays.
The state government has donated 500 acres of land to the port project, which has a total cost of Rs. 7,525 crore.
When finished, this port will be one of India’s deepest ports, and 80% of all of the nation’s transshipments of cargo will pass through it.
The project’s sole bidder, Adani Ports, requested a grant in the amount of Rs 1,635 crore for construction.
A share of the port’s earnings will go to the state government after 15 years, and Adani will run the port for 40 years, with the option of 20 more.
