Vizhinjam stir: Adani seeks Rs 78.70 cr as damages

Thiruvananthapuram: The Adani Ports has sought Rs 78.70 crore as damages from the Kerala Government to recover the losses suffered by the company during the fisherfolk’s protests against the Vizhinjam project. A letter in this regard was sent by the company to the state Ports Department.

Responding to Adani’s demand, the Vizhinjam International Seaport Limited (VISL) – a public sector undertaking overseeing the project – has informed the government that the amount should be recovered from the Latin Catholic Archdiocese of Thiruvananthapuram.

This is because the stir against the project which led to the losses claimed by Adani was organised by the Archdiocese, said VISL.

Moreover, several court orders have been issued to make parties pay up for loss suffered to public property during protests called by them, VISL pointed out.

Count of the losses
In its letter to the Secretary of Ports, Adani has listed a preliminary estimate of the losses from August 16 – when the stir began – to September 30.

According to the company, an amount of Rs 57 crore was wasted as hired equipment could not be used.

Another Rs 2 crore was lost on account of salaries paid to employees without doing any work.

In addition, interest payment of Rs 19.23 crore had to be done. Adani also claimed in the letter that the protestors had destroyed property worth Rs 42 lakh.

Yet another expense caused by the stir was electricity charges of Rs 5 lakh, the letter said.

Adani said that it was the responsibility of the state government to ensure suitable conditions to carry out construction activities and so the government had to pay the damages.

Project extension?
Incidentally, Adani Ports has been making efforts to extend the deadline for completion of the project work by six months citing the stir.

By sending the letter seeking damages, Adani has made the position of the state government more difficult.

According to the agreement between Adani and the state government, the first phase of the project was to be over by December 2019.

However, the project was delayed and the deadline extended. Now, for the third time, the company has sought an extension.

An extension of 16 months was sought for the first time after the Ockhi Cyclone of 2018, but it was not allowed. The company made another request for an extension in view of the COVID-19 crisis, but the government deferred the deadline only by 34 days.

In fact, under Phase 1, work on 2,500 m of the 3,100-m groyne (‘pulimuttu’) should have been completed by December 3, 2019.

When this deadline was missed, the government served a notice on the company. Subsequently, Adani approached the tribunal against the notice, pointing out the crisis created by Ockhi Cyclone and COVID-19.

As per the contract, the Phase 1 deadline could be extended by three months in case work was not over and by six months by charging a fine on Adani Ports.

The rate of fine was fixed at Rs 12 lakh a day and the company is supposed to pay Rs 21.6 crore to the government.

However, Adani has now demanded Rs 78.70 crore from the government as damages.

Underground rail
Meanwhile, an application by the state government to the Appraisal Committee under the Union Ministry of Environment, Forest and Climate Change seeking permission for an underground railway track from Vizhinjam Port to Balaramapuram has been returned.

Earlier, the Centre had approved an application for laying a track at ground level.

But, later, it was decided to build an underground railway track and approval was sought by VISIL for the new alignment.

The Centre has now returned the application seeking details regarding disaster management facilities and chances of flooding.