Funding Conditions for Vizhinjam Port Expansion in Kerala

The central government has allocated Rs 817.80 crore for the viability gap fund of the Adani Vizhinjam Private Port Limited (AVPPL) as part of a tripartite agreement. The agreement sets a new condition for completing the second and third phases of the port by 2028, rather than the original target of 2045 with an investment of Rs 10,000 crore. The state government is optimistic that achieving this goal 17 years ahead of schedule will attract significant investments in a short period. However, AVPPL failed to complete the construction on time, citing events like Cyclone Ockhi and floods. Despite this, the Vizhinjam International Seaport Limited (VISL) rejected their request for an extension.

The Cabinet decided to cancel the delay in completion of the project based on the terms of the agreement and to extend it for five years under certain conditions. The AVPPL must accept the conditions for the further process of signing the tripartite agreement to be initiated. This development could have significant implications for the construction and investment timeline of the Vizhinjam port project.

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