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This is an archive article published on June 4, 2015

No consensus on bid for Vizhinjam port, Gadkari says project may be shifted to TN

Adani Group was the lone bidder for the project, which had no takers in the previous rounds of tendering.

Consensus eluded at the all-party meeting held on Wednesday over a final decision to accept the bid of Adani Ports and Special Economic Zone Limited for the construction and operation of the proposed Vizhinjam port.

Adani Group was the lone bidder for the project, which had no takers in the previous rounds of tendering. The government failed to clear the Opposition doubts about the deal, leading to the failure of the meeting to reach a consensus.

Last month, the board of the directors of the Vizhinjam Seaport International Limited had accepted the bid of the Adani Group for the development of the port and container transhipment terminal on PPP model.

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The Congress government was forced to convene an all-party meeting after the Opposition CPI (M) alleged corruption in the deal. The CPI (M) had alleged that the government was handing over land worth Rs 6000 crore to Adani Group.

The CPI (M) had questioned the government’s reluctance to go for a re-tendering of the project when Adani Group was the lone bidder.

The project had no takers despite several rounds of bidding coupled with promotional activities. First phase of the project would cost Rs 7,525 crore.

Although the all-party meeting failed, Chief Minister Oommen Chandy said the government would go ahead with the project at any cost.

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Meanwhile in Mumbai, Union Shipping Minister Nitin Gadkari said that Rs 7,000-crore international port project at Vizhinjam in Kerala might be moved to neighbouring Tamil Nadu if the political differences in the state over awarding the project to the Adani group is not resolved fast.

“If there are differences in Kerala on this port, I am giving you a clear direction that we will make the international port at Colachel near Kanyakumari in Tamil Nadu,” he told media.

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