By IANS
Chennai : Union Shipping Minister T.R. Baalu said here Friday that the Axis Bank has not withdrawn from the controversial Sethusamudram Shipping Canal Project.
“I have no information to suggest the bank has withdrawn from the Sethusamudram project. Even if they eventually decided to do so, there are several others willing to take their place simply because it is backed up by a sovereign guarantee issued by the government of India,” Baalu told reporters.
He was reacting to AIADMK chief J. Jayalalitha’as assertion that the project was as good as dead and that the bank was no longer interested in it.
On Oct 11, Jayalalitha had termed the project a “closed chapter” and a “dud project”.
Though Baalu did not directly refer to Jayalalithaa’s criticism, he conceded part of her allegations which said that the cost of the project had gone up.
“This is only because of the 12.5 percent central sales tax (CST). This issue will be raised during the next meeting of the union cabinet and a waiver or at least a reduction will be sought,” Baalu said.
“Nearly 70 percent of the work has been completed. Further, nine million cubic feet of sand and other impediments have been removed from the Adam’s Bridge (Ram Sethu) area. Political parties opposing this are doing so only with an eye on the Gujarat elections and nothing more. Once the [election] exercise is over, everyone will stop talking about it once and for all,” Baalu maintained.