Govt hands over Rs 100 cr to Adani Group for breakwater construction in Vizhinjam

THIRUVANANTHAPURAM: After three days of frantic efforts, Ports Department handed over Rs 100 crore rupees to Adani Group for breakwater construction at Vizhinjam port. The money was arranged from the Kerala Financial Corporation (KFC) at an interest rate of 9.25 per cent. The money deposited in the account of Vizhinjam International Seaport Limited (VISL) with government guarantee was handed over to the Adani Group late in the night. According to the assurance of Minister Ahamed Devarkovil, the last date for the first installment of Rs 347 crore rupees for the breakwater construction was on Friday.

Kerala Kaumudi had reported that the Ports Department is in talks to get a loan from a government financial institution.

The government's first move was to borrow the funds from HUDCO but there will be a delay. Later, discussions were held with KSFE but to no avail. A consortium of co-operative banks was formed to find funds, but it wasn't possible to get money by March 31. After this, negotiations were held with KFC. The effort was to get Rs 275 crores but the government has to settle with Rs 100 crores.

With this, it is certain that land acquisition for rail-road connectivity in Vizhinjam will be delayed.

HUDCO loan is assured within three months. Once it is received, the amount from KFC will repaid in one lump sum. The balance amount to Adani and fund for road-rail connectivity will be given from the HUDCO loan. The Ports Department has also stated that it has not given up its efforts to borrow from the Co-operative Bank consortium.