The Hindu Business Line : Kochi port raises concern on land acquisition delay for rail connectivity

Concerned by the inordinate delay in land acquisition for the connectivity projects for the Vallarpadam Terminal, the Cochin Port Trust has sought the assistance of the Shipping Ministry to persuade the State Government for an expeditious action in the matter.

Financial loss

The port is understood to have communicated the matter to the Ministry pointing out that things have reached a very serious situation that could lead to considerable financial loss on account of possible liquidity damages claim and escalation in costs due to delay in commissioning the project in the set time frame.

Highly placed sources told Business Line that the port had conveyed to the Ministry that it would not be possible to stick on to the time schedule of the commissioning of the terminal unless the land is made available. Failure on the part of the port trust to provide the road and rail connectivity by the set time frame of April 1, 2009 is likely to result in a breach of contract, which could lead to compensation claims, litigation apart from the inevitable loss of face, the sources said.

Rail Vikas Nigam Ltd, according to sources, had formally communicated to the port that they would not be in a position to complete the work before the stipulated date of March 2009 and had stated that they could estimate the revised dates for commissioning only after the requisite land is handed over to them.

ICTT at Vallarpadam

International container transhipment terminal (ICTT) at Vallarpadam is a mega project involving the construction of one of the largest railway bridges in India. Considering the fact that it would be very difficult to carry out the work during the monsoon, it would be practically impossible for RVNL to complete construction of the rail corridor by the target date.

RVNL had commenced work in the backwater areas in February 2007. However, the imported machinery and equipment of the main contractor of RVNL has been lying idle for several months due to non-availability of land in the remaining areas, the sources said.

Rehab packages

Though the State Government had announced various rehabilitation packages, people in several localities have refused to move demanding better packages and preventing RVNL from carrying out the work.

The rehabilitation packages have been revised repeatedly under pressure from different quarters, the sources added.

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