Kerala and Adani Ink Landmark Deal for Swift Completion of Vizhinjam Port

The Kerala government and Adani Vizhinjam Port Private Limited have agreed on a new concession deal for the Vizhinjam International Port, accelerating its completion to 2028. The agreement includes a Rs 10,000 crore investment and sets penalties for delays. The port's capacity will reach 3 million TEUs.

The Kerala government has entered into a supplementary concession agreement with Adani Vizhinjam Port Private Limited to expedite the completion of the Vizhinjam International Port Project. This new deal will see the project's final phase completed by 2028, advancing the timeline by 17 years.

Details emerged from the state cabinet meeting chaired by Chief Minister Pinarayi Vijayan, who confirmed that the draft agreement was approved following consultations with the legal department and the Advocate General. This approval comes after arbitration proceedings were withdrawn.

Under the agreement, Adani Ports has committed to a significant investment of Rs 10,000 crore, boosting the port's capacity to 3 million TEUs. The project has encountered previous delays due to COVID-19 and natural disasters, incurring a penalty of Rs 219 crore, partially payable to the state.

(With inputs from agencies.)