Adani Sails Closer to Vizhinjam Deep Sea Port
An empowered committee established by the Kerala State government in India has recommend the lone bid submitted by the Adani Ports and Special Economic Zone Ltd. (APSEZ) to build and operate a new International deep water seaport project at Vizhinjam.
With this, Adani has scaled the first hurdle in winning the contract for constructing and operating the port. Interestingly, Adani Ports was the single bidder for the project.
The committee’s recommendation will now go to the board of the Vizhinjam International Seaport Ltd (VISL), the government port company chaired by the Chief Minister which is in charge of the project, on May 13. The final decision on the award of contract will be taken by the Cabinet.
Adanis will now build the port superstructure and operate the proposed international multi-purpose port and container transshipment terminal at Vizhinjam, say observers.
The project aims to convert a minor port near the state capital Thiruvananthapuram into a major transshipment hub. Phase 1 of the project is estimated to cost Rs 7,525 crore, of which the public-private partnership component alone will account for Rs 4,089 crore.
With the Empowered Committee submitting its recommendation, the matter would now be considered by the Vizhinjam Seaport International Ltd (VSIL) board chaired by Chief Minister Oommen Chandy.
The project conceived decades ago delayed due to various reasons. The project had faced hurdles recently with no company submitting final bid for taking up the contract for its construction and operation when last date for bidding ended in February last, even though five companies expressed interest for the project.
Adani Group has exclusive partnership in three harbours and partial partnerships in five harbours in India.
