LDF govt. waived ₹219-cr. penalty on Adani Group for Vizhinjam port delay, says Satheesan
Kerala opposition leader V.D. Satheesan has accused the LDF government of waiving a ₹219-crore penalty owed by the Adani Group for delays in the Vizhinjam port project. The government extended the construction deadline by five years, a move Satheesan claims was unjustified and potentially linked to a deal regarding the port's stake sale.
Why it matters
The controversy highlights ongoing political tensions in Kerala regarding infrastructure project management and the transparency of government dealings with major corporate entities.
Chief Minister V.D. Satheesan on Wednesday asked the Left Democratic Front to explain why the government led by it had waived a penalty of ₹219 crore liable to be paid by the Adani Group for the delay in constructing the Vizhinjam port.
At a post-Cabinet press briefing, Mr. Satheesan was responding to an LDF charge that the UDF government had struck a ‘’deal” with the Adani Group in connection with the proposed MSC stake sale related to the port.
The port construction should have been completed in 2019 as per the concession agreement. When it was delayed, the Pinarayi Vijayan government had amended the concession agreement and extended the period by five years to 2024. The concession period, consequently, was increased from 40 years to 45 years.
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