There is no change in ‘landlord’ model for development of proposed deepwater, multi-purpose port and international container transhipment terminal at Vizhinjam near here.
This model envisages that State government sets up the basic infrastructure for the port while the private concessionaire takes care of the superstructure and operations, Minister for Ports K. Babu said here.
MOTIVATED CAMPAIGN
He refuted as baseless, ill-founded and motivated any propaganda to the contrary. Efforts were on to secure viability gap funding based on the landlord model of development.
As per this, financial support is made available in the form of grants, one-time or deferred, to infrastructure projects undertaken through public private partnership with a view to making them commercially viable.
The Centre established a Viability Gap Fund to aid infrastructure projects which face viability gap due to its inherent nature.
Babu reiterated that the State Government was merely following up on procedures to secure viability gap funds made available by the Centre.
TERMS OF REFERENCE
Acceptance of the first landlord model enjoins on the State Government first and foremost to get terms of reference (TOR) for environmental clearance vetted by the Union Ministry for Environment and Forests.
This clearance was received in July 2011, subsequent to which a detailed study of the environment was launched across, and necessarily involving, two full monsoons in the region.
Changes were incorporated into master plan to reflect upgradation of the port to receive mother vessels of 18,000 twenty-foot equivalent units (TEUs) against the originally proposed 9,000 TUEs.
This puts the Vizhinjam port in direct competition with Colombo, and not Tuticorin port on the east coast as some people seem to be mistakenly holding forth.
MASTER PLAN
The revised master plan also provides for development of cruise terminal and a fish landing centre. A detailed project report has since been prepared and a socio-economic cost and benefit analysis conducted.
Significantly, Indian Navy and Coast Guard are now being allotted special berths at the port, given its strategic location. Both defence wings had written separately to the State Government with the request.
The Navy would be a given a 500-metre berth and Coast Guard, 120 metres, on a cost-sharing basis, the minister said. This had been formally conveyed to the respective parties.
Also, Indian Army has its only amphibious brigade base in Thiruvananthapuram. Vizhinjam port could become a launch pad for joint operations of the Navy and Army.
Commercial operations of the port would not be hit in any manner due to this. In fact, presence of the defence wings at the port would only improve its appeal to prospective investors.