Amid allegations that the UDF government was scrapping the ‘Landlord Model’ prescribed for the Vizhinjam seaport project, Ports Minister K Babu has said that the government had no such intention and that the development model, recommended during the previous LDF rule, will be followed.
A certain section was trying to scuttle the project and their activities will harm its progress, Babu said in a statement. The government was trying to obtain maximum Viability Gap Funding (VGF) from the Centre by preserving the ‘Landlord Model.’
The Port Minister’s statement has come amid Opposition allegations that the UDF Government was trying to bring back the PPP model for the multi-crore port project.
The UDF Government had revised the master plan prepared during LDF rule to accommodate the biggest container vessels and also a cruise terminal, Babu said.
Finance-wise, the government has completed procedures for procuring Rs 300 crore from the banking consortium led by SBT, Rs 500 crore from HUDCO and Rs 300 crore from the Indian Infrastructure Finance Company Ltd (IIFCL). The Government has also completed the rating for issuing government bonds worth Rs 800 crore.
The Minister also said that Vizhinjam’s real competition was with Sri Lanka’s Colombo port and not with Tuticorin, as was being alleged.
The EIA report for the multi-crore project will be published soon and the public hearing held, Babu said.
