THIRUVANANTHAPURAM:: As part of the agreement between the Kerala government and Adani Ports, the govt of Ketrala will now have to give Rs 400 crore to Adani Ports as the construction of the breakwater at the upcoming Vizhinjam port is underway.
In accordance with their agreement, after 30% of the breakwater is finished and Adani Ports has been pounding on the government's doors for some time, Kerala will be required to provide them Rs 400 crore.
The state government is unable to keep its promise to the port builder since it is mired in debt and has a precarious financial situation. The Pinarayi Vijayan administration has now decided to borrow Rs 400 crore from HUDCO because time is running out.
Adani Ports was the only bidder for the project, which had been a dream project for several governments before being finally approved by the then-Oommen Chandy administration (2011–16).
The work commenced on December 5, 2015. The first ship was supposed to berth there on September 1, 2018, in a time record of less than 1,000 days, according to Gautam Adani's announcement at the time. However, due to a number of circumstances, things went awry. The first ship will berth in March 2023, and the port's first phase will be put into operation in 2023, according to state ports minister Ahamed Devarkovil.
When typhoon Ockhi hit the building site in 2017, a piece of the built breakwater washed away. Since then, the lack of limestone, the project's most crucial raw material, has created further delay.
The state government has provided 500 acres of land to the port project, which has a total cost of Rs 7,525 crore.
Upon completion, this would be one of India's deepest ports, and 80% of the nation's transshipments of freight would pass through it.
The only bidder for the project, Adani Ports, requested a grant of Rs 1,635 crore for construction.
The agreement states that Adani will run the port for 40 years, with an option for a further 20 years, and that after 15 years, the state government will receive a part of the port's earnings.