Kerala's Port of Dreams: Vizhinjam Project Secures Crucial Funding Amidst Financial Challenges

The Vizhinjam deep-sea port in Kerala secures Viability Gap Funding (VGF) of Rs 817.80 crore following a tripartite MoU involving the Union government, a bank consortium, and Adani Ports. The Kerala government opts for accepting the fund as a loan following unsuccessful attempts to obtain it as a grant.

The Vizhinjam deep-sea port, a potential game-changer for Kerala's maritime infrastructure, has secured a pivotal financial agreement. A tripartite Memorandum of Understanding (MoU) was inked on Wednesday between the Union government, a bank consortium, and Adani Ports Pvt Ltd for Viability Gap Funding (VGF) of Rs 817.80 crore.

The deal marks a significant step forward, as the Kerala government opts to accept the VGF as a loan despite earlier appeals for it as a grant. Efforts by Kerala Chief Minister Pinarayi Vijayan, including appeals to the Prime Minister and the Finance Minister, did not sway the Union government's stance.

The project, managed under a public-private partnership model by Adani Ports, aims to be a major logistical hub. Impressively, the Vizhinjam port has already handled over 250 cargo vessels, with dedicated expansions in rail and road connectivity projected to complete by 2028.

(With inputs from agencies.)