Vizhinjam port: Protests intensify even as compensation amount spirals

The agitation by Kerala fishermen, who are demanding that the construction of the Adani Group’s Vizhinjam International Seaport be suspended, is set to intensify. 

On September 4, a circular was read out during the Sunday mass in the Latin Catholic Churches in Thiruvananthapuram, with a call to step up the protest. The circular, issued by Archbishop Dr Thomas J Netto, slammed the government for ‘playing a game,’ along with the Adani group, which is building the port, and getting a High Court order against the protest.

Meanwhile, the state government has made it clear that it’s ready to debate any demand as long as it’s not to do with scrapping the project altogether. Chief Minister Pinarayi Vijayan, in a recent statement, asserted that the impact study can be carried out as demanded by the fishermen, but not by putting a halt to the construction.

Also read: ‘Adani should go back’: Fishermen intensify protest against Vizhinjam port

Pinarayi offers support

In a statement made in the Assembly, Pinarayi expressed willingness to concede with all the seven demands except two: halting the construction and providing kerosene at subsidised rate. He said the kerosene price is finalised by the Centre and the state has a limited role to play in determining subsidies. Though sympathetic to the demands raised by the protesters, the CM alluded that the agitation was ‘orchestrated’ as those behind it had ‘special motives.’

Last week, the Kerala High Court instructed the government to provide police protection to facilitate the construction of the port. It observed that the right to protest against any policy does not legitimise the right to interrupt an activity which had secured all required permissions. It  also instructed the state government to seek necessary aid from the Centre if the police are not able to manage the situation.

The action committee, headed by the priests of Latin Catholic Archdiocese of Thiruvananthapuram, which is spearheading the protests, has categorically declared that it would not roll back until the government meets the entire demands raised by them. Its biggest demand is that the ongoing construction should immediately be put on hold and an environmental and social impact study carried out. The CM’s suggestion that a study be done within three months without stopping the construction was rejected by the protesters who, in turn, decided to intensify the struggle.

Progress at snail’s pace

While the government seems confident about the completion and the commencement of the port, it is a fact that the construction has been moving at snail’s pace. The legal dispute between the Adani Group and the Kerala government is being heard by an arbitration tribunal. It is going to settle the compensation amount the Adani Group has to pay to the government for the delay in completing the project.

Also read: ‘Kerala has become dog’s own country’: SC takes up stray dog menace issue

As per the MoU signed in 2015 during the tenure of the UDF government headed by Oommen Chandy, the construction of the port was set to be completed by December 3, 2019. On December 4, 2019, the state government served a notice to the company, asking it to complete the project in the cure period of 270 days, as per the contract. 

As the cure period got over on March 2, 2020, Vizhinjam International Seaport Ltd (VISL) is mandated to pay 0.1 per cent of the performance security amount per day as compensation to the government till the date on which the port becomes operational. This amount — Rs 12 lakh per day since March 3, 2020 — has to be paid by Adani to the government as stipulated in the MoU.

Also read: Kerala govt seeks report after tree felling for road widening kills birds

Legal row

After the company was served the notice to pay compensation, VISL demanded more time for the completion, which was turned down by the government. The company challenged the government’s stand in the arbitration tribunal, a three-member body consisting of retired Supreme Court Judges, led by former SC judge Justice Kurian Joseph.

Before the commencement of the arbitration process, the government initiated a conciliation meeting, but the Adani Group preferred to fight it out in the tribunal and turned down the offer of conciliation, according to a statement tabled in the Assembly on August 30 by Minister for Ports, Ahammad Devarkovil. 

Currently, the arbitration process is on; both the parties have submitted their statements on which the hearing is in progress. Meanwhile, Rs 12 lakh per day for 917 days (till September 6, 2022) amounts to Rs 110 crore, and this figure keeps growing day by day. 

According to the conditions of the MoU, the company is liable to pay compensation till the time it commences the operations of the port.