Centre denies security clearance to Vizhinjam port

New Delhi, Aug 4 (UNI) The centre has denied security clearance to a consortium of three companies, including two from China, which was the highest bidder in a global tender for the implementation of the Rs 5000 crore Vizhinjam Port development project in coastal district of Thiruvananthapuram in Kerala.

This was conveyed to State Port Minister M Vijayakumar by the office of the Prime Minister.

Mr Vijayakumar told mediapersons here today that the state government would commence the process of global retendering once the centre gave in writing its decision denying security clearance.

"Vizhinjam port development is a top priority for this government," the minister said.

The previous Congress-led UDF government headed by Chief Minister Oommen Chandy had finalised the bid six months ago and sought security clearance from the centre for the implementation of the project by the consortium consisting of a Mumbai-based Indian company and two Chinese companies.

Mr Vijayakumar said despite the setback to the Vizhinjam project, the state government would not allow any further delay in the execution of the project in three stages. The first phase envisages an investment of Rs 1,850 crore.

The denial of security clearance is seen as part of the Union Governments perception that the presence of companies with Chinese links in the development of ports will seriously compromise Indian maritime security.

Kaidi Electric Power Company and Chinese Harbour Engineering Company are the two companies from China who had bid for Vizhinjam along with an Indian partner in the consortium.

Vizhinjam is a minor port near Kovalam in Thiruvananthapuram, the capital of Kerala.

The biggest advantage that Vizhinjam has over all other ports in the country is that there is no need for any dredging at all.

UNI SH DKS KN1901