Kerala - Thiruvananthapuram   

Poll declaration not to derail work on Vizhinjam project

Staff Reporter

Committee on Security to decide on clearance

Thiruvananthapuram: The declaration of Assembly elections in Kerala on Wednesday has virtually put the brakes on the massive build-up to the inauguration of the Vizhinjam container terminal project. But, officials maintain that the election process will not derail the project.

With the electoral code of conduct coming into effect from the time of declaration of election dates, the Government is likely to scrap the high-profile inauguration of the project by the Prime Minister.

"No fresh policy decision is required. The State Cabinet has already decided to issue a letter of intent to the successful bidders. But this depends on the Union Government's political clearance for the project.

The Cabinet Committee on Security is scheduled to decide on the issue in a week or two", said a high- ranking official.

Official sources said the electoral code of conduct would not come in the way of signing the construction agreement but they admit that the process would, in all likelihood, extend well beyond the elections. "There will be no going back. At worst, the signing of the final agreement may spill over to the next Government," they said.

The State Government had sought political clearance from the Centre to allay national security concerns after a consortium involving Chinese firms bagged the Rs.4,200-crore bid for the Vizhinjam project.

The consortium includes the Mumbai- based Zoom Developers and two Chinese firms, Kaidi Electric Company and China Harbour Engineering Company.

The Government decision was based on the concerns raised by various ministries and intelligence agencies over the increasing participation of foreign companies in India's infrastructure projects.

A formal proposal was sent to the Shipping Ministry in January.

The final clearance is to be granted by the Cabinet Committee on Security.

Prime Minister Manmohan Singh was expected to inaugurate the project early March.

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