THIRUVANANTHAPURAM: Having taken the stand that compensation will be demanded from the Adani Group for delaying the Vizhinjam project, the government is facing the same plight. As per data tabled in the Assembly on Monday, the government is yet to transfer nearly 30 acres of land in the project area to the Adani Vizhinjam Port Pvt Ltd, the concessionaire for the `7,525-crore project. For each day the hand-over gets delayed, the government must pay the Ahmedabad-based group a compensation of `8,093.72, Ports Minister Ramachandran Kadannapally informed the House. The entire land for the project should have been transferred by May 12, 2017. Which means, the government is attracting a major liability by delaying the land transfer.
The Adani Group had informed the government that the project is likely to overshoot the December 4, 2019, deadline and be delayed by 16 more months. However, the government had decided not to budge from its stand that the deadline should be met. Further, the government had said it will demand compensation from the group as 25 per cent of the project cost was not invested by the 690th day as stipulated under the concession agreement. Though the Adani Group has contested this claim saying that it has invested 35.8 per cent, assessment by internal auditors puts the figure at 21.5 per cent, Kadannapally said. Dredging of the channel and construction of breakwater had been hit following the Ockhi cyclone. Two dredgers were damaged in the cyclone and the scarcity of granite had hit the breakwater construction. Only 600 metres of the breakwater has been built so far. Steps are being taken to address the shortage of granite, the minister informed the House.
The Adani Group had informed the government that the project is likely to overshoot the December 4, 2019, deadline and be delayed by 16 more months. However, the government had decided not to budge from its stand that the deadline should be met.