THIRUVANANTHAPURAM: The cabinet gave approval for the state government to enter into a supplementary concession agreement with Adani Vizhinjam Port Private Limited on the Vizhinjam International Port project.
As per the draft agreement, the state will extend the project period by five years considering the delay caused due to Covid and natural disasters including Ockhi and floods.
The second and final phase of the Vizhinjam port, which was to be completed in 2045, will be completed by 2028. Unlike the previous agreement, all phases of the port will be completed by this time. These phases will see Adani Port making a new investment of Rs 10,000 crore within 4 years. Once the project is completed, the minimum capacity of the port will be 30 lakh TEU.
As per the draft agreement, the state will levy Rs 43.8 crore as fine from the concessionaire for delaying the project. Earlier the state demanded Rs 219 crore as fine for the delay. The remaining amount will be withheld till 2028. If the project cannot be fully completed in 2028, the five-year extension of the contract period will be cancelled. The government will also recover the withheld amount, as per the draft.
The agreement was necessitated following the withdrawal of the arbitration proceedings. The cabinet approved the supplementary agreement after seeking the advice of the Law Department and the Advocate General.
OTHER DECISIONS
The cabinet has asked the Justice C N Ramachandran Nair Commission, appointed to find a permanent solution to the ownership issue in the Munambam issue, to submit the report in three months. The cabinet has assigned the Chief Secretary to prepare the matters for consideration of the judicial commission. The Ernakulam District Collector has been assigned to set up the necessary office and other facilities for the commission on time.
The meeting also decided to take immediate steps to locate the dependents of the deceased in the Nattika road accident. Further steps to locate the dependents and provide financial assistance will be taken at the Chief Minister’s level.
The meeting decided to allow a monthly travel allowance of Rs 500 to members of Community Development Societies, except the CDS chairperson.
The spoil dredged from the part of the Vembanad Lake that falls under the National Waterway will be given to the National Highways Authority free of cost for the development of National Highway 66, keeping in mind the public interest. This spoil will be exempted from royalty and seniority charges with conditions. It has also been decided to request the National Highways Authority to examine whether this amount can be deducted from the cost of road development.