The ongoing projects of the Adani Group at Kamarajar Port and Vizhinjam Port have been impacted by COVID-19 and the lockdown measures announced by the State and Central governments.
With the pandemic and the lockdown continuing, their impact, in terms of money, cannot be quantified at this stage. However, project completion time as also net project value will be affected, according to a company official.
The entire work at these ports was stopped during the first lockdown due to various orders by the authorities. Even after the relaxation of lockdown curbs, since May 18, work had been impacted due to restricted working hours, disruption in supply chain and non-availability of manpower. Meanwhile, the group has invoked force majeure clause.
Earlier, the Adani Group had set October 2020 as deadline for the completion of its second container terminal project at Ennore. But, due to prevailing conditions and restrictions, project completion might get delayed by 12 to 14 months. And, it would also lead to cost escalation, industry sources said.
As per the plan, the second container terminal will have a quay length of 330 metres and handle 0.6 million 20-foot equivalent units of containers (TEUs) of containers. As on date, Adanis have completed only 20% of the civil works. The initial cost of the terminal was pegged at ₹578 crore and this might rise to ₹800 crore, said the sources.
Adani Ports Special Economic Zone reported a 25% drop in volume for all types of cargo for April and May compared with the year-earlier period and hoped there would be a faster economic recovery by the second quarter of FY20.
Source: The Hindu