Vizhinjam project deal not beneficial to state, will fetch Adani group undue benefit of Rs 29,217 crore :CAGtext_fields
Thiruvnanthapuram: The Comptroller and Auditor General (CAG) report has said the Vizhinjam port project is against the interests of Kerala. In its report, the CAG said the 10-year extension of the construction period given to the Adani Group was illegal and through this, the group would earn an undue profit of Rs 29,217 crore.
The agreement with the state government also included a clause of giving an extension by 20 years. Recently, Administrative Reforms Commission Chairman V S Achuthanandan had strongly criticised the agreement.
For the Rs 7,525 crore-Vizhinjam Port, 67 percent of the project expense is born by the state government. Adani spends only 33 percent. However, once the agreement period ends, Adani will be able to make huge profit and the state will be left with no profit and additional liabilities.
The port, being developed under public-private-partnership (PPP), is one of the ambitious projects of the state. The transshipment hub, on completion, would cater to the largest mother vessels with a capacity of 18,000 TEU.