Vizhinjam awaits clearance from Home, MEA

THIRUVANANTHAPURAM: Now that the two potential private partners for the Vizhinjam International Container Transshipment Terminal (ICTT) project have been cleared by the Defence Ministry, all eyes are on the two additional hurdles of a similar nature - green signals from the Union Home and External Affairs Ministries.Chief Minister Oommen Chandy will take up the matter with the Centre during a visit to New Delhi on November 23.Of the two, the Home Ministry’s nod is the crucial one, as the MEA green flag has been necessitated due to the presence of an Australian firm in one of the consortiums. The Defence Ministry on Monday waved through the two bidders - Mundra Port and Special Economic Zone Ltd and a consortium of Welspun Infratech Ltd, Welspun Corp Ltd, and Leighton Welspun Contractors Pvt Ltd. Ports Minister K Babu issued a statement in this regard.Price bids of the two groups will be opened only after all Central clearances are obtained. But these are minor hurdles compared to a `critical activity’ - the ongoing Environmental Impact Assessment (EIA) at Vizhinjam. Everything, from project implementation to bank funding, hinges on the EIA outcome, said Suresh Babu, CEO, Vizhinjam International Seaport Ltd (VISL), the State Government firm overseeing the project."It is the most critical activity. It is a detailed study which includes looking at mathematical models, impact on the Vizhinjam Fishing Harbour and local populace and scrutiny of shoreline changes and wave patterns. It is being performed over three seasons,’’ he said.In October 2010, the Cabinet decided to implement the project on the `Landlord Model’ where the state itself owns the port infrastructure. Phase I is scheduled to be commissioned by 2015.At current estimates, Phase I of the approximately Rs 6,600 crore three-phase project will cost Rs 4,010 crore. The state will bear the major chunk in this phase as it is responsible for the basic infrastructure including a Rs 1,000-crore breakwater. The private partner will shell out only Rs 970 crore in this phase.RAIL AND ROAD CONNECTIVITYThe State Government has sought Central assistance for establishing rail and NH connectivity to the port. The Chief Minister is expected to convene an all-party meeting and a meeting of people’s representatives of the project area within two weeks to discuss rail connectivity to the port. The Rail Vikas Nigam Ltd has prepared the alignment, but a final decision on land acquisition for the purpose will be taken only after the meetings.