Kerala CM Appeals for Unconditional Seaport Funding

Kerala's Chief Minister, Pinarayi Vijayan, has urged the Union Finance Minister, Nirmala Sitharaman, to release the Centre's portion of the Viability Gap Funding (VGF) for the Vizhinjam seaport without the condition of repayment by the state. He argues that this condition contradicts the purpose of VGF.

In a bid to safeguard Kerala's financial interests, Chief Minister Pinarayi Vijayan has petitioned Union Finance Minister Nirmala Sitharaman to release the central government's share of Viability Gap Funding (VGF) earmarked for the Vizhinjam seaport. He called for the funds to be released without imposing a repayment condition on the state.

The Chief Minister explained that the current demand by the Department of Economic Affairs' Empowered Committee for repayment would result in a significant financial burden, costing the state exchequer Rs 10,000 to 12,000 crore. Such a condition is said to undermine the VGF's very purpose, which is to offer non-repayable financial backing to Public-Private Partnerships (PPPs) in non-viable projects.

Vijayan further pointed out that a similar repayment condition was not enforced on the Outer Harbor project at Tuticorin Port, and requested equal treatment for Vizhinjam Seaport. With ports contributing significantly to national Customs duties, he highlighted that Vizhinjam holds the potential to generate considerable revenue for the central government.

(With inputs from agencies.)