Kerala Chief Calls for Relief from Seaport Funding Repayment Burden

Kerala Chief Minister Pinarayi Vijayan urged Finance Minister Nirmala Sitharaman to release Centre's Rs 817.80 crore Viability Gap Funding for Vizhinjam seaport, opposing a repayment condition. Vijayan argued adherence to repayment would burden Kerala with Rs 10,000-12,000 crore loss, contradicting VGF's purpose as a non-repayable, one-time grant.

Kerala Chief Minister Pinarayi Vijayan has made a heartfelt plea to Union Finance Minister Nirmala Sitharaman, stressing the immediate need for the release of Rs 817.80 crore allotted as Viability Gap Funding (VGF) for the ambitious Vizhinjam seaport project.

Vijayan's letter highlights a significant financial burden placed on the state government, should they be required to repay the VGF amount in the future. The CM argues that this repayment stipulation could ultimately accrue losses of up to Rs 12,000 crore, thereby undermining the financial health of Kerala.

Expressing his concerns over such a precedent, Vijayan points out that similar demands were not enforced with projects like the Outer Harbor at the VOC Tuticorin Port. The controversy has sparked debate over the intent and execution of the VGF, traditionally considered a non-repayable, infrastructure-supporting measure.

(With inputs from agencies.)