Kerala’s ambitious Vizhinjam port project, led by the Adani group, has been mired in protests and violence. Transshipment container terminals promise to reduce logistics costs and make manufacturing competitive. Peppermint Explains how the project got embroiled in controversies.
Vizhinjam port project is related to?
In 2015, the Adani Group signed a concession agreement with the Government of Kerala to build India’s first mega transshipment container terminal at Vizhinjam near Thiruvananthapuram. 7,525-crore project – an all-weather deep-sea port with a depth of 24 meters – can serve large megamax-sized container ships. There is no coastal sedimentation in this natural harbour, which reduces the need for periodic dredging and lowers maintenance costs. The port, which is well connected to the hinterland, will handle 1 million twenty foot equivalent units in Phase-I and another 6.2 million TEUs on completion.
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How important is this project for India?
Located right across the international shipping lanes and close to the East-West shipping axis, Vizhinjam Port has the potential to attract a substantial portion of the container transshipment traffic that is now handled by Colombo, Singapore or Dubai. Also, a large portion of India’s exports and imports that are now transshipped through these international ports can be handled at Vizhinjam, and this would mean a sharp reduction in shipping costs and lead times. This will go a long way in reducing the overall logistics cost and making manufacturing competitive. It will also create thousands of jobs – direct and otherwise.
Then why are people opposing the project?
Local fishermen fear displacement and loss of livelihood. They blame high tides and increasing coastal erosion on the project. The protest turned violent after the Kerala High Court allowed resumption of work last week. On 27 November, protesters attacked a police station. They want the work to resume only after the impact study of the project by an expert panel.
Has the protest taken a communal colour?
Yes; The Latin Catholic Church has been at the forefront of the protests. Police have charged the archbishop and several priests in connection with the attack on the police station. Several Hindu organizations have thrown their weight behind the project and want it to be completed at the earliest. They blame foreign funding for the ‘anti-development’ protests. The project has also produced strange partners – surprisingly both the BJP and the ruling CPI(M) are on the same side of an issue, and want the project to go ahead.
What is the current status of the project?
Adani Group claims that 70% of the work on the project has been completed. The protests have stopped work for over 100 days now. Attempts to resume work last week after a favorable court order sparked violence, stalling work again. An all-party meeting convened on 28 November failed to break the impasse. The state government is adamant that the project go ahead and is supported by most parties except the Congress. At the same time, the protesters say that no one is backing down from their plan to stop work. The courts can come into play again.
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