Adani Group stock crash sparks concerns over Vizhinjam Seaport’s future

THIRUVANANTHAPURAM : The charges filed against billionaire Gautam Adani and seven others in an alleged multibillion-dollar bribery and fraud scheme in the United States have cast doubt on the Adani Group’s commitment to the development of the Vizhinjam International Seaport in Kerala..

The port, which is billed to redefine Indian maritime business with its geographical proximity to the international shipping lane linking the maritime hubs in South Asia, Southeast, and West Asia, is scheduled to be commissioned in December this year (2024) or early January next. The latest controversy, it is believed, is likely to throw a spanner in the works for the second phase of the port’s investment over the next four years, which is an estimated ₹9,700 crore. 

A senior officer of the Adani Group elaborated the crisis. “Hardly ₹10,000 crore is required for the second phase of expansion of the Vizhinjam port and ₹1,300 crore for the redevelopment of the Thiruvananthapuram International Airport, which was taken over by Adani Group three years ago. This is not a big deal considering the financial position of the company. Further, this is not the first time panic has gripped the market with the company being falsely targeted by vested interests. We are sure that this too shall pass as in the past,” he said.

The Vizhinjam seaport project had missed several deadlines and was dragged into arbitration proceedings after the Adani Group failed to honour the provisions in the agreement signed between Kerala in 2015, according to which the port was to be commissioned in 2019. Later, the Kerala government walked the extra mile to bring the project on track by ending the arbitration proceedings against the port concessionaire halfway through, foregoing the ₹219 crore it was entitled to receive from the concessionaire for delaying the project for some five years.