Vizhinjam port: State to get 817cr as VG funding

T'puram: Ports minister VN Vasavan said Kerala would receive the viability gap funding (VGF) amount of Rs 817.80 crore for Vizhinjam international seaport in a month.
Vasavan told reporters on Saturday that Centre has promised to release the amount in a month. The Union govt, Adani Ports and a bank consortium signed an agreement early this month for issuing VGF to the port developer.
With the VGF, the port becomes commercially viable as it covers the difference between the construction cost and the revenue of the project. The state govt will have to repay the money as per the terms set by the Union govt and there will not be any interest for the amount. The govt pressed the Union govt to issue VGF as a grant but did not get a favourable response.
Once the VGF is transferred, all formalities and work in connection with phase one of the project will be over. The port, which is a huge success going by the number of container ships it has attracted so far since trials started in July 2024, will be commissioned by Prime Minister Narendra Modi on May 2.
The port has so far received more than 250 container ships and handled 5 lakh containers. This week, the port achieved a landmark when it handled 10,576 containers from MSC's ship Paloma. The ship arrived from Coega port in South Africa on April 15.