THIRUVANANTHAPURAM: With delays hitting the Vizhinjam seaport project, the cost of establishing it also is on the way up.According to revised estimates, the first phase of the multi-crore project will now cost the State Government Rs 4,040 crore, almost double that of the existing estimate.The revised Phase I project cost was announced in the Governor’s policy address to the State Assembly on Friday.Earlier, the Vizhinjam International Seaport Ltd (VISL) had approved a revised action plan for the Vizhinjam project after the UDF Government came to power.According to the previous estimate, the total project cost was pegged at Rs 5,934 crore at 2010 prices. Of this, Phase I accounted for the lion’s share - Rs 2,530 crore. The Phase II cost had been pegged at Rs 1,224 crore and Phase III at Rs 2,180 crore.Reclamation of land and construction of breakwater are the major works planned in Phase I; the first work expected to cost Rs 290 crore and the second, Rs 1,113 crore at 2010 prices. Other works planned in Phase I include Quay wall (Rs 244 crore), general port superstructures (Rs 18 crore), container terminal (Rs 207 crore), container terminal equipment (Rs 451 crore), marine services (Rs 143 crore), utilities (Rs 46 crore) and miscellaneous (Rs 14 crore).With the project getting tangled up in environmental issues, the cost is expected to shoot up further. The State Government had earlier reached an understanding with a consortium of banks for raising Rs 2,500 crore to fund Phase I.The details, such as the interest rate, are only being worked out. Union Environment and Forests Minister Jairam Ramesh had announced recently in Thiruvananthapuram that the Vizhinjam project would be accorded environmental clearance within a year.On the other hand, the expert appraisal committee of the MoEF had expressed its dissatisfaction with the site identified by Kerala for the project. It had also expressed concerns over the future of fisheries in the area and the livelihood of the local fishing communities.
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