Government turns its back: Vizhinjam rail in red tape

THIRUVANANTHAPURAM: The government is creating obstacles in the tender for the railway line to Vizhinjam port by not accepting the arbitration clause for dispute resolution. This is at a time when the railway line is essential for the benefits of the port to reach the rest of the country. It has been eight months since Konkan Rail prepared the tender document. The tender can be called only if there is government approval. If the government does not give permission before the elections are announced in early March, then it will take four months.

The cabinet meeting approved the Rs 1482.92 crore project document for the 9.5 km tunnel railway to the port in March last year. It was announced that the construction would be completed by December 31, 2028. Permission was also given to acquire 5.52 hectares of land at a cost of Rs 198 crore. However, officials wrote in the file that the arbitration clause in the construction tender cannot be accepted. This is a clause related to collecting compensation in case of delay in construction, increase in cost or abandonment of the project. The arbitration tribunal can determine the compensation accordingly. The Finance Department's position is that the arbitration clause is not possible as it would create a financial liability for the government. With this, the approval for the tender is stuck in the secretariat.

Although it was decided in 1988 to exclude the arbitration clause in the state's tenders, this clause was accepted in the 8.735 km tunnel with a construction cost of Rs 2134.5 crore. If the government gives permission, the tender can be called within a week. The EPC (Engineering, Procurement and Construction) contract for the construction will be called in a single phase. The project cost will also increase as the tender is prolonged. The 1482.92 crore has reached 1600 crore. Even if it is completed in four years, it will be 2000 crore. Land acquisition for the project has already started.

Policy decision needed

1) What is required is a policy decision of the government with an arbitration clause to give permission to call for tenders.

2) The Finance Department and the Law Department must approve it and the Chief Minister must give final approval to the tender.

3) The state is providing money to the railways from a loan of 2100 crores taken from NABARD.