Adani port in Communist state triggers 3-cornered credit fight

India Today

02-05-2025

The inauguration of the Adani-made Vizhinjam International Seaport in Communist-ruled Kerala by PM Narendra Modi on Friday triggered a three-way tussle for credit. The high-profile commissioning ceremony of India's first deepwater transshipment port ignited a fierce political tussle among the CPI(M), Congress, and BJP over who made the project a reality.The ceremony, presided over by PM Modi, was attended by Kerala CM Pinarayi Vijayan and Congress leader Shashi Tharoor, might have several political takeaways, but the tug-of-war over credit reveals the project's significance.advertisementTharoor is the MP from Thiruvananthapuram, where the project is located.
Thiruvananthapuram's Vizhinjam seaport is India's first deepwater transshipment port. Built at an estimated cost of Rs 8,867 crore under a public-private partnership (PPP) with Adani Ports and Special Economic Zone Ltd (APSEZ). It is poised to transform Kerala's economy and bolster India's position on the global trade map.CPI(M) CLAIMS ITS 9-YEAR RULE TURNED PORT INTO REALITYThe ruling CPI(M), led by CM Vijayan, has positioned itself as the architect of the Vizhinjam project. It has attributed its success to the party's nine-year governance in the southern state.Vijayan, who was present at the inauguration alongside PM Modi and Adani Group Chairman Gautam Adani, said, "Kerala is bearing the majority of the cost, Rs 5,370.86 crore out of the total Rs 8,686 crore", subtly downplaying the Centre's role.advertisementVijayan described the port as "a historic investment by the state", marking "the beginning of a new era in India's maritime trade".Not just Vijayan, the CPI(M) roped in another stalwart to claim credit for the Left party.CPI(M) state secretary MV Govindan Master said that if anyone can be given the fatherhood of the Vizhinjam project, it is former Chief Minister EK Nayanar, who led Left governments in the state from 1980-1981, 1987-1991 and again 1996-2001. "Nayanar is the one who launched the Vizhinjam project," MV Govindan told India Today Malayalam.The CPI(M) also highlighted its role in overcoming hurdles, including protests by local fishermen in 2022, to bring the project to fruition.However, the CPI(M)'s narrative drew the sharpest criticism from the Congress, which alleged that the efforts by the Grand Old Party had been sidelined and undermined.CONGRESS WANTS VIZHINJAM PORT NAMED AFTER OOMMEN CHANDYThe Congress, leading the United Democratic Front (UDF) opposition, vehemently contested the CPI(M)'s claims of credit. The Congress, which is eyeing to dislodge the Vijayan-led Left Democratic Front (LDF), asserted that the project's foundation was laid by the Oommen Chandy-led government in 2015, adding the port be named after the former Congress leader.Chandy, who passed away in 2023, signed the initial agreement with the Adani Group in August 2015. His government had then faced massive criticism from the opposition over the pact.advertisementLeader of the Opposition in Kerala Assembly and Congress leader VD Satheesan, who claimed he boycotted the inauguration ceremony, accused the CPI(M) of "hijacking credit" and attempting to "erase Chandy's legacy"."Those who deliberately try to forget or rewrite history are the ones who fear even the memories of Oommen Chandy," Satheesan wrote on Facebook, sharing a 2015 video of the Congress leader's speech on the port's significance.Congress MLA M Vincent, representing the Kovalam constituency where the port is located, paid tribute to Chandy at his tomb before attending the ceremony, calling him the "father of the Vizhinjam Port".BJP SAYS VIZHINJAM PORT PART OF PM MODI'S VISIONThe BJP, led in Kerala by state president Rajeev Chandrasekhar, has framed the Vizhinjam port as a cornerstone of Prime Minister Modi's vision for India's maritime and economic growth.Chandrasekhar, speaking to news agency PTI, said the Vizhinjam port was a result of the Narendra Modi-led Centre's steadfast support."The Vizhinjam port is part of PM Modi's vision of having a large number of ports around India that will improve India's global trade competitiveness and make India an increasing hub for manufacturing. Vizhinjam is one of those ports and the government of India has been steadfast in supporting the development of that port despite many delays over the last several years," Chandrasekhar told news agency PTI.advertisementPM Modi himself took a swipe at the opposition INDIA bloc during the event, noting the presence of CPI(M)'s Vijayan and Congress MP Shashi Tharoor on stage, taunting that the inauguration of the Vizhinjam Port would give "sleepless nights" to many.The credit war over the Vizhinjam port has now turned into a political flashpoint, with each party leveraging it to bolster its electoral prospects in Kerala, whose Assembly goes to polls before May 2026.The CPI(M) and Congress, traditional rivals in Kerala, but part of the INDIA bloc, are both fancying their chances. And the BJP's fight for credit, in a state where it has historically struggled to gain ground, shows it also sees itself in the fight.WHY KERALA'S VIZHINJAM PORT IS A GAME-CHANGERIrrespective of the political claim-game and what implications it might have on elections next year, the Vizhinjam port is a rare convergence of Communist governance and corporate enterprise. The seaport, which has emerged as a remarkable success story in the Communist state, will go on to boost the state's economy.advertisementOperated by the Adani Group, the port topped cargo handling charts among 15 Indian ports in February, a feat Kerala Chief Minister Pinarayi Vijayan hailed as an "amazing achievement". The milestone came just three months after the port began commercial operations.Located near Thiruvananthapuram and strategically positioned close to major international shipping routes, Vizhinjam handled 78,833 TEUs of cargo from 40 ships in February, surpassing ports like Kochi and Chennai.So far, the Vizhinjam port project has directly generated over 2,000 jobs and indirectly supported around 5,000 livelihoods in the region, reported the Indian Express, citing inputs from project officials. With the port now operational, local businesses, from transportation to food services, have reported a sharp rise in demand. This will signal a ripple effect on the regional economy, which is mostly rural.THE VIZHINJAM SEAPORT STORY SO FARHowever, the Vizhinjam port project's journey was anything but smooth.Despite political opposition and massive protests by Latin church-backed fisherfolk concerned about coastal erosion and loss of livelihood, Vijayan pushed ahead with it. The Left veteran stood firm in support of the public-private partnership with the Adani Group, which had been in the crosshairs of his national coalition partner and local rival, the Congress.advertisementVizhinjam, India's first deep-water, fully automated container transshipment port, will operate under a 40-year agreement with Adani Ports and SEZ. The Kerala government provided 500 acres and signed the project under the DBFOT model in 2015 under Oomman Chandy.Partial operations began in October 2023, and Phase One was completed by December 2024. With plans to expand capacity to 4.5 million TEUs by 2028 and an investment of over Rs 10,000 crore, the port is expected to become a key node in global maritime trade.The Vizhinjam International Seaport, with a natural water depth of 18–20 meters and proximity to international shipping routes, the port is designed to handle large container vessels and reduce India's reliance on foreign ports like Colombo and Dubai. As PM Modi said, the Vizhinjam port is the "symbol of new-age development", adding, "On the one hand, there is this big sea with so many opportunities, and on the other hand, there is the beauty of nature. In between, there is this Vizhinjam Seaport."Must Watch