THIRUVANANTHAPURAM: The state government has slapped a Rs 18.96 crore penalty on the Adani group for failing to adhere to contractual obligations regarding work progress.
According to senior officials, the Adani Group should have incurred an expenditure to the tune of 25 per cent of the total project cost within the first 690 days (600 days plus another 90 as grace period), a deadline which ended in October. According to the government, the Ahmedabadbased group spent only 21.75 per cent of the project cost of Rs 4,216 crore.
On the other hand, government officials said that Friday’s action was only a normal procedure mandated under the concession agreement signed between the state government and the Adani group in 2015. Recently, Chief Minister Pinarayi Vijayan had made it clear the government would not allow any extension on the Phase I deadline set for the project. The government made its stand clear after the Adani Group sought an extension on the grounds that their dredgers were damaged when Cyclone Ockhi struck.