Page 396 - SSB Interview: The Complete Guide, Second Edition

Cash crunch for the project
Axis Bank Ltd. was appointed “loan arranger” for the project in 2005. Since

its inception in 2004, costs have skyrocketed to at least `4,000 crore, interest
rates have crawled higher and old loan terms have lapsed. Even before the
first dredger began its work in 2005, costs had already spiralled to more than

`3,500 crore. The loan sanctions, valid only up to `2,400 crore, lapsed. To
secure more money, Sethusamudram Corp. Ltd would have to return to the
drawing board, draw up new reports, sit with parliamentary committees and

receive fresh approval. The project cost which originally stood at `24,700
crore will now escalate by almost `4,500 crore, a shipping ministry source

said.

Environmental

According to the Environmental Impact Assessment carried out by the Indian
government on 2 July 2005, the project would disturb the ecological balance
and would be the reason for the death of corals. It is also an important fishing

ground for the state of Tamil Nadu. There exists a biological park in the
vicinity of the proposed project. Local fishermen, Hindus, Muslims and
Christians alike oppose the present route and are demanding alternative

channels, which are available. They say the present channel would destroy
marine life and corals. This will kill the trade in shankhas (conch shells) that
has a turnover in excess of `150 crore (`1.5 billion) per annum. Invaluable

thorium deposits would be affected, which are too important for our nuclear
fuel requirements.

Professor Tad Murthy, the world-renowned tsunami expert, who advised

the Government of India on the tsunami warning system and edited the
Tsunami Journal for over 20 years, has also warned that the present
Sethusamudram route may result in tsunami waves hitting Kerala more

fiercely. In reply to a query regarding the Sethusamudram’s impact, he wrote,
“During the Indian Ocean tsunami of 26 December 2004, the southern part of
Kerala was generally spared from a major tsunami, mainly because the

tsunami waves from Sumatra region travelling south of the Sri Lankan island,
partially diffracted northward and affected the central part of the Kerala

coast. Since the tsunami is a long gravity wave (similar to tides and storm