CAG on Vizhinjam: Kodiyeri Balakrishnan finds report serious

Thiruvananthapuram: CPM state secretary Kodiyeri Balakrishnan on Tuesday said  he expected the government to look into the startling revelations made by CAG about the Vizhinjam port agreement.

Kodiyeri told reporters here that the objections pointed out in the CAG report had been raised by the LDF earlier. “We had raised these concerns ahead of the signing of the agreement. The state government will look into the issues raised by the CAG and see whether there are any major lapses,” he said.

The CAG report had slammed the agreement saying that the project was against the interests of the state and one which provided undue benefits to the promoters Adani Ports.

It pointed out that the decision  to extend the concessionaire agreement for 10 more years would provide additional revenue of '29.27 crore to the promoters.

The CAG report has come as a shot in the arm for veteran CPM leader V S Achuthanandan who had sought a white paper on the agreement in Assembly the other day.  The CAG findings will surely bring pressure on the LDF government to have a relook at the agreement.

Though the chief minister has taken a position against tinkering with the agreement signed by UDF government, under the new circumstances continuing with this stand would be untenable for the LDF.

He had made it clear that if the contract with Adani group were to be scrapped it would result in several serious legal issues.

The chief minister had admitted that though there were major shortcomings in the agreement, the government had no option but to take the project forward as per the conditions laid down in the previous agreement.

One of the major reservations of the government is about the Public Private Partnership model adopted by the UDF Government.

The LDF was in favour of landlord model for retaining more government control over the project.