CAG calls Vizhinjam agreement one-sided

THIRUVANANTHAPURAM: The Comptroller and Auditor General (CAG) has termed the agreement between the state government and Adani group ,for setting up Vizhinjam International Seaport project as one sided, with a substantial advantage to the Adani group.
Kerala government which had incurred 67 % of the total project expenditure of Rs 7,525 crore will be drawing a profit of mere Rs 13,948 crore. Meanwhile, the Adani Group which shares 33 % of the project expenditure will reap a profit of Rs 1, 44, 653 crore, the report pointed out.While the state government will spend Rs 5,071 crore, Adani will spend only Rs 2,454 crore for the project.
"The Kerala government had had not been able to draw up a PPP policy clearly defining the objectives and due processes with the result that a major project languished at the drawing board stage leading to diminished financial viability. The technical and financial estimates prepared by external consultants were not scrutinised with due diligence resulting in inflation of cost estimates. The interest of the Kerala Government was not protected adequately while drawing up the concession agreement. Irregularities and lack of economy were noticed in the expenditure incurred for the project," the report said.
Meanwhile, Vizhinjam Seaport Limited CEO Jayakumar said the CAG report was only a draft one and many of the queries raised by the CAG were answred by the government.
The report prepared by the principal account general (Audit) Amar Patel is learned to be almost final. However, the report is not likely to be tabled in the state assembly during the ongoing session. According to sources, the report with minor modifications may be tabled in the assembly in December.
Meanwhile, ports minister Kadannappally Ramachandran said that he had not seen the report but said the government was committed to go ahead with the project.