Latest on Vizhinjam

March 14, 2010    
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Haven’t seen any posts up here on my favourite topic of Vizhinjam Port for a while…so I decided to research out the latest developments and here’s what I got (in chronological milestones). Have spoken to a lot of people and compiled press clips etc so hopefully most of this is as accurate as can be, but apologies in advance for any glitches.

It appears that a lot of groundwork has been going on in preparation for the project and things are on the right track. I really wish this could have been started much earlier so that the project would at least have been made ripe for further development instead of being held delayed all these years. The following steps are under-way to enhance the feasibility of the entire project and make it much more viable/bankable to attract reputed parties who are otherwise reluctant in an economic slowdown to invest in a greenfield port:

In November’09 Govt. announced a new action-plan after scrapping the historical baggage. A new team was appointed and the proposal includes two phases. In the first phase, Govt. itself is developing the infrastructure for the port and road/rail connectivity through its SPV – VISL. Messrs IFC were appointed as advisers replacing the previous consultants. A new project office was inaugurated on 9th Dec’09 and Equity infusion of Rs 450cr was announced by Govt. In early Jan’10, the project was notified as Fast Track Land Acquisition project and a package was notified by that order. Subsequently, a Special LA unit has been set up with tahsildar and other revenue officials to kick start the process of acquiring 120ha.

After surveying the entire extent of 120ha meant for road, rail, warehouses, back up area, truck terminal etc., stones were planted and survey no peg-marked. All party meeting was held by the CM, leader of opposition was consulted, Extensive consultations were held with affected people, panchayat, politicians, MLA, MP and details with maps and alignment were published in leading newspapers. Affected persons can visit the project office and see the maps any-time. The package includes direct purchase price, compensation for structures, adjacent/nearby resettlement, compensation for loss of income etc – quite a generous one and will be implemented by a committee headed by revenue authorities/Dist. Collector. In the first phase, the number of affected families/houses is very small, less than 50 it seems.

Last week the notice of acquisition for road, warehouse etc was published in newspapers and revenue officials with VISL are on site so that the first part of acquired land can be completed in the next 8-9 months. The balance extent for railway needs first to be accepted and approved by Railway Board and so will start much later, following which Railways themselves would construct the line to Balarampuram. VISL itself wants to start constructing the 2km road connection by the end of 2010. Simultaneously, KWA has completed calling for the tender to supply water from Vellayani Kayal and KSEB has been asked to upgrade the supply in the area.

A very basic requirement is to have detailed environmental surveys/model studies done in order to apply for clearances from Environment Ministry. This had not been initiated in all these years…any-ways, now an application has been moved for coastal zone clearance, consultants have been appointed to conduct the model studies spread over 3 seasons/18 months, on the basis of which data environmental clearance can be applied for in 2011.

Meanwhile, the plan is to float a global EoI calling for expression of interest by June that would signal the very initial pre-bidding process. This would be followed by RFP etc and the whole tender process is expected to take another 6-8 months after that. Fingers crossed, if all goes well…the bidder should be finalised early next year and hopefully as the project progresses, the global economic scenario would have also started improving so that port/shipping players are in a better positon to come forward. Meanwhile, for the infrastructure development/construction, Govt. is leaving no stones unturned and would itself take the construction of basic requirements. For this, discussions have been started with lenders, investors, viability funds from Central Govt. etc.

Seems like a pretty sure-fire plan so that this third time around, things don’t get messed up again. All hopes and prayers that our dreams finally come closer to happening this one final time!!

Posted Under: Dev Spotlight, Featured

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10 Comments

  1. hi

    very infornative post buddy…

    lets hope this project comes thru the third time atleast…

  2. Exciting times for all the people of the area. This area could be a example to the world if it is planned correctly. Thiruvananthapuram district could become a vibrant, modern city/zone moving into the next century, due in the most part to the highly educated population.

  3. wewillmakeithappen

    LA work on in full swing, cabinet approved package yesterday: very generous and includes negotiated land price to be awarded by district committee headed by Collector, 5 cents land for those losing structures, value of structure 150% of normal pwd enhanced rates subject to minimum 3 lakh rupees, squatters/encroachers also to get plots for rehab, six months hardship allowance to all losing rental or livelihood….a model scheme!

    grapevine has it that the state govt has decided to construct the road through pwd/kstp and foundation stone is expected to be laid for road connectivity in the next three months as stage is set for construction soon as land is taken in possession. State equity 250cr made available to VISL, Govt of india approached for viability gap funding, discussions with multilateral funding agencies on…

    meanwhile,ennvironmental surveys and data collection equipment installed for three season sudy spanning 1 year. required for env clearances, CRZ permission already underway. Southern railway fixing final alignment to construct 10km rail link.

    IFC Market study favourable, proposes incl cruise terminal for luxury liners/QE class vessels to boost tourism of all segments. Technical study, design and costing expected in June by Royal Haskoning of Netherlands.

    Interest received from spain, Neterlands, Korea, other countries. Global expressin of interest to be published, EoI in july/August following which selection process to kickstart in the last ew months of the year. Extensive international marketing being launched by VISL/IFC prior to that after making sufficient progress with above groundwork, development plans. SeNSIBLE, PRACTICAL, CAUTIOUS, MEASURED – hopefully third time lucky?
    truly global plans for global scale project!! no more nonsense from boomsoom ttype idiots..

  4. vran77

    Who are these IFC guys? are they any internation consultants or some other desi political group?

  5. vran77

    Who are these IFC guys? are they any international port consultants or some other desi political group?

  6. vran77… IFC is the International Financial Corporation, member of the World Bank Group.. They have been appointed by GoK as the lead advisor for designing and implementing the transaction.

  7. vran77

    It indeed and good decision, but IFC is a financial body. But who will be bringing in the technical know how? Who will be controlling the labourers in the establishment to control the high risk strike possibilities. This cannot be ignored due to various union strongly exisiting in the state.

  8. Chandru Rajan

    @vran77

    State-of-the-art technical design and environmental and social study by Royal Haskoning

    Investment quality market study by Drewry Shipping Consultants

    International legal team of Allen & Overy (Singapore) and Trilegal (India)

    Larsen & Toubro Ramboll to conduct Environment and Social Impact Study for landside connectivity area

  9. renjith

    cool guys…
    happy to see that every one is optimistic about the project.Land aquisition is gonna be very tricky bcos of panchayath election,hopefully our politicians would realise the importance of the project and act sensibly by avoiding unnecessary issues.We will have to watch out what is our media’s stand when things start unfolding…………….lets keep the fingers crossed…………

  10. gokul

    well all i hope is the politician’s don’t make a mess out of this project…
    my dad who is in INDIAN COAST GUARD in vizhijam told me about the conformed news about the project plan of port..

    if once this project is done vizhijam port will become Kerala’s important port just like Cochin port…
    so hope this project turns out well……..