Kochi: Adani Group has landed in trouble as the state government demanded a huge amount as compensation for delaying Vizhinjam port's first phase of construction. The government has issued a notice to the Adani Group demanding Rs 71.52 cr as compensation. But the Adani Group has approached arbitration against the notice from the government.
As per the contract signed between Adani Group and the Kerala government on August 17, 2015, the first phase of the port construction must be completed within December 3, 2019. But it is learnt that most of the construction works relating to the project are pending.
Observing the work at a slow pace, the government has extended the deadline by 270 days. Relaxations were also given in the fine payment which should be paid for violating the agreement. Examining the COVID situation, further relaxation was given in fine payment for 34 days.
The company has to pay Rs 12 lakh as penalty for every 24-hour extension of the deadline. At present, the Adani Group has to settle the penalty for 599 days.
As per the information obtained by Proper Channel president MK Haridas through an RTI plea, the government had spent Rs 1252 cr from the state treasury for the Vizhinjam project.
