KOCHI: The Kerala High Court on Wednesday directed the state government to provide information about the commercial benefits involved in the Vizhinjam International Seaport Ltd project.
The court issued the order on a petition filed by M K Salim of Kollam, who sought a CBI probe into awarding of the project to the Adani Group. He cited the report of the Comptroller and Auditor General (CAG) which said the state’s interests were not protected when the deal was signed.
The court observed the allegations were serious and the state’s future was at stake. “The government should explain the commercial considerations behind the deal and the commercial benefits arising out of it,” the court said.
Salim said the CAG report said despite 67 per cent investment by the state, the financial benefit it accrued was not commensurate with its investments.“It said the agreement enables Adani Group to charge user fee from fishermen for using the facilities in the fishing harbour constructed as funded work. Since the cost of the entire funded works, which comes to Rs 1,463 crore, is to be borne entirely by the state government, this would be tantamount to conferring an undue benefit to the concessionaire at the government’s cost as per the report,” Salim said.
On Salim’s allegation the government failed to provide the necessary infrastructure to an inquiry commission appointed to probe the deal, the court asked the government to give information about the steps taken in this regard. Salim alleged though the commission was to submit a report in six months, it publicly declared nothing could be done for four months owing to infrastructure crunch. Citing the CAG report, he alleged the deal will incur a loss to the state right from the first day of its implementation.
The CAG report also listed various unfavourable conditions in the concession agreement of the project which has gone against the state government’s interests and to the advantage of Adani ports, SEZ Pvt Ltd, Salim said.
“Though the standard concession period (SCP) for PPP projects is 30 years, it is fixed at 40 years for this project which will help the company earn an additional revenue of Rs 29,217 crore. The agreement allows a 20-year extension of the SCP, adding the total period to 60 years in the company’s favour,” Salim said. “The entities at whose instance all the conditions were laid down and all those responsible for the lapses must be brought to book,” he submitted.
Petition cites CAG report
The petition seeking a CBI probe into awarding of the project to Adani Group cited the CAG report which had stated the state’s interests were not protected in the deal. It said despite 67 per cent investment by the state, the financial benefit it accrued was not commensurate with its investments.