labels: Industry - general
Uncertainty looms over key infra projects in Kerala news
26 June 2009

As if the global meltdown and the deficient monsoon were not bad enough for Kerala's economy, it is now facing another blow - prospects of key infrastructure projects ending up in limbo with uncertainty already looming over the SmartCity project in Kochi and the Vizijam container transshipment terminal.

According to industry sources if the projects are shelved or dropped not only will the state's macro infrastructure suffer but it will also drive away prospective investors in the sector.

In the event the fallout would include a continued depression of the state's realty sector that had been banking of the two major projects in Kochi and Thiruvananthapuram. Additionally it will also hit job opportunities for the 24,000-odd engineers passing out of the state's engineering colleges each year.

The latest setback has reportedly come from the consortium Lanco Kondapalli Power Limited considering withdrawing from the project due to inordinate delay in procedures.

After Lanco had been selected from the bidders, Mumbai-based Zoom Developers took to litigation for a re-evaluation of its bid by a committee appointed by the state government.

Lanco had been awarded the project on build-operate-transfer through a global tendering process. A rival consortium led by Mumbai-based Zoom Developers, which too had bid for the project, went to court challenging its disqualification during the appraisal of its technical bid.

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Uncertainty looms over key infra projects in Kerala