WCT – Govt. as a damsel on honeymoon

by I. P.C. MENDIS

The government has just extricated itself from the mess of the MOU with India and Japan over the ECT issue by resorting to the swap of the WCT for the ECT, which seemed to be unilateral decision, resulting in a comparatively mild rebuff by the Indian authorities ( not a howl though) for non-consultation.

In fact, Cabinet spokesman, Udaya Gammanpila, stood promptly corrected by the Indian High Commission in regard to the former’s press briefing. The MOU was with India and Japan for the development of the ECT and its financing, the estimated value of which was USD 700 million. The protests over several weeks centred around the Indian and foreign involvement as well as the developer, the Adani Group. The government’s stance in regard to the developer was that its nomination was by India, the financier. The protesters cited the opposition in India itself to the Adani Group. Finally, the government was compelled to a compromise arrangement of a swap of the WCT for the ECT, to which the Indian authorities appeared to have taken exception. Indeed, what transpired in the interim appears to have been a closely guarded secret, till the recent announcement that a Letter of Intent had been issued to the Adani Ports & Special Economic Zones Ltd., a subsidiary of the Adani Group for it to function not only as the developer but also as the financier! The estimated value has not been disclosed.

This, notwithstanding the earlier protests in regard to the Adani Group involvement in the development based on the huge resentment to this outfit by the Indian community itself and the developer not being selected through tender procedure.

If there has been no direct Indian government involvement the present proposed arrangement has been made why has the same developer been chosen through private consultation and discussion. The said developer will have a 51% controlling shareholding and there is nothing to prevent them extending their interests through proxy in the minority shareholding too. The SLPA will have very little say over the development aspects, including quality control. Why on earth is the SLPA/government hell bent on this particular developer, not only as developer but also as the financier? Has India repeated its resolve to twist the arm of the government as in the case of the “parippu” drop and the 13th Amendment?

The government has to take the people into its confidence and come clean without playing hide and seek. With such an astounding mandate, it cannot conduct itself irresponsibly, disposing assets BOT or otherwise, like a damsel on honeymoon – mildly and meekly protesting and eventually succumbing to the inevitable!