Govt in damage control mode, cancels deep-sea fishing deal

Proof of engagement with EMCC, coastal hartal force it to scrap entire C5,000-cr agreement
For representational purposes
For representational purposes

THIRUVANANTHAPURAM: After a series of denials about any meaningful engagement with US-based EMCC International, which was proposed to invest Rs 5,000 crore in the state, the government took the exit route to avoid further damage. It cancelled the MoU between the company and industries department, signed during the Ascend-2020 investors’ meet in the hope of putting an end to the controversy. 

While the government did not say whether it had got any fresh evidence against the investor, Congress leader Rahul Gandhi’s bonhomie with the fisher community and the upcoming coastal hartal on February 27 could be the possible reasons for the U-turn. The proposal was signed on February 28, 2020, 48 days after the industries department organised Ascend-2020 in Kochi. 

Industries Minister E P Jayarajan reportedly took the initiative to cancel the proposal though he said a day before that he could not cancel a land deal which had not taken place.The EMCC has been sanctioned four acres at the Marine Park owned by Kerala State Industrial Development Corporation (KSIDC) under the industries department for setting up a food processing unit. The government had showed signs of retreating as it cancelled the controversial agreement between Kerala Shipping and Inland Navigation Corporation (KSINC) and EMCC on Monday. The chief minister also directed Additional Chief Secretary T K Jose, who is the department head of the inland navigation, to probe the allegations raised by Leader of Opposition Ramesh Chennithala.

The Rs 2,950-crore deal signed by KSINC managing director N Prasanth and EMCC International India Pvt Ltd president Shiju Varghese on February 2 was to build deep-sea fishing trawlers, new harbours, and port development activities. 

The decision to build trawlers by a corporate entity had not gone down well with the fisher community as the government had maintained that it would maintain the interest of local fishermen. Meanwhile, Fisheries Minister J Mercykutty Amma blamed the KSINC MD for signing the deal during the march by the Opposition leader. She hinted at a conspiracy angle with the involvement of Prasanth who had worked as the private secretary of Chennithala earlier.

The chief minister, industries minister and fisheries minister had claimed that they were not aware of the company or the deal. However, Chennithala who exposed the move came up with fresh evidence of the company representatives meeting the chief minister and fisheries minister prior to the submission of the proposal in 2020. He also released pictures of the meetings and correspondences by the bureaucrats. EMCC’s Shiju Varghese also maintained that he had met the ministers. 

The release of a letter by fisheries secretary K R Jyothilal for verifying the credentials of EMCC prior to signing the deal became another proof of the government engaging with the investor. Union Minister for State V Muraleedharan also came up with the allegation that the state government went ahead with the deal even after the Central government had flagged the company’s credentials.

Fisheries min hints at conspiracy angle

Fisheries Minister J Mercykutty Amma blamed the KSINC MD N Prasanth for signing the deal during the march by the Opposition leader. She hinted at a conspiracy angle with the involvement of Prasanth who had worked as the private secretary of Chennithala earlier.

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