Kerala hands over Vizhinjam LoA to Adani Ports & SEZ.

The Kerala government has handed over the letter of award (LoA) for the mega Vizhinjam port project to sole bidder Adani Ports & SEZ Ltd.

The document was e-mailed to Sumeet Agrawal, Senior Manager-Business Development, of the company recently, Chief Minister Oommen Chandy said.

This puts to rest all speculations over the delay in the handover after the state cabinet had given the go-ahead as far back as June 10.

The Adanis will now undertake development and operation/maintenance of the Vizhinjam International Deepwater Multipurpose Seaport project on PPP mode and a Design, Build, Finance, Operate and Transfer basis.

The first phase of the project involves a cost of Rs. 7,525-crore of which Rs. 1,635 crore will come in a grant component by way of viability gap funding shared equally by the state and central governments.

The LoA requires of the Adanis to execute the concession agreement within 45 days of its receipt and furnish the performance security.

The Chief Minister said that the state government and promoters Vizhinjam International Seaport Ltd are proceeding on the assumption that work on the project would begin on November 1.

Representatives of Adani Ports & SEZ are expected to reach Thiruvananthpauram on July 20 for discussions with the government.

Chandy rubbished rumours over the delay in handover of the LoA which he attributed to restrictions imposed on publication of the terms of agreement given the size and scale of the project.


HBL