Chief Minister V.D. Satheesan on Wednesday asked the Left Democratic Front to explain why the government led by it had waived a penalty of ₹219 crore liable to be paid by the Adani Group for the delay in constructing the Vizhinjam port.
At a post-Cabinet press briefing, Mr. Satheesan was responding to an LDF charge that the UDF government had struck a ‘’deal” with the Adani Group in connection with the proposed MSC stake sale related to the port.
The port construction should have been completed in 2019 as per the concession agreement. When it was delayed, the Pinarayi Vijayan government had amended the concession agreement and extended the period by five years to 2024. The concession period, consequently, was increased from 40 years to 45 years.
According to Mr. Satheesan, the concession agreement had a clause which required the Adani Group to pay ₹12 lakh per day to the State government in the event of delays. For five years, the penalty comes to ₹219 crore. “This was waived in two stages. So what was that deal about?” Mr. Satheesan said.
The 2018 floods and the COVID-19 pandemic cannot be used as a justification for the five-year extension, he said.
The present UDF government had not taken a single decision with respect to the proposal by the Adani Group to divest its 49% stake in Adani Vizhinjam Port Private Limited. Decisions would be based on the report that would be submitted by the Empowered Committee appointed to study the matter, he said, adding that the government would protect the State’s interests.
Mr. Satheesan said the government was yet to receive the report of the Special Investigation Team (SIT) probing the alleged police atrocity against Youth Congress workers in 2023 .
The report was with State Police Chief Ravada Chandrasekhar, he said in response to questions on the status of the report which purportedly had adverse remarks against ADGP M.R. Ajith Kumar. Mr. Satheesan said the government had to adhere to certain procedures and cannot bypass them.
Published - July 15, 2026 08:33 pm IST