Centre gives final nod to VGF for Vizhinjam port project
PORTS & SHIPPING

Centre gives final nod to VGF for Vizhinjam port project

The Centre has granted final approval for extending viability gap funding (VGF) of Rs 8.18 billion to the Vizhinjam International Deepwater Multipurpose Seaport being built by the Adani Group, even as protests from local fishermen and other delays continue to dog the project.

The port is meant to cut India’s dependence on Colombo to send and receive container cargo. The Vizhinjam project is entitled to receive a viability grant funding of Rs 16.35 billion, to be shared by the Centre (Rs 8.18 billion) and the Kerala government (Rs 8.17 billion), making it the first and only port project to be offered such a grant. Of this, Rs 1,227 crore will be given during the construction phase and the balance during the operation period spanning 40 years and extendable by another 20 years.

The VGF was the basis on which the bid was awarded to Adani Ports and Special Economic Zone Ltd (APSEZ), which quoted the least grant of Rs 16.35 billion in an auction in 2015.

“The government of India has finally sanctioned the VGF,” said Subrata Tripathy, chief executive, ports, APSEZ. “We are expecting the VGF to come in so that the project gets going.”

VGF is a one-time grant given by the central government for supporting public-private-partnership (PPP) projects in infrastructure that are economically justified but fall short of financial viability.

Vizhinjam is being developed as a container transhipment port with an investment of Rs 55.52 billion. The Kerala government will collect a premium/revenue share from the private operator from the 16th year of operations.

See also:
Adani Ports launches new arm Tajpur Sagar for Bengal port
Centre approves development of container terminal at Deendayal Port


The Centre has granted final approval for extending viability gap funding (VGF) of Rs 8.18 billion to the Vizhinjam International Deepwater Multipurpose Seaport being built by the Adani Group, even as protests from local fishermen and other delays continue to dog the project. The port is meant to cut India’s dependence on Colombo to send and receive container cargo. The Vizhinjam project is entitled to receive a viability grant funding of Rs 16.35 billion, to be shared by the Centre (Rs 8.18 billion) and the Kerala government (Rs 8.17 billion), making it the first and only port project to be offered such a grant. Of this, Rs 1,227 crore will be given during the construction phase and the balance during the operation period spanning 40 years and extendable by another 20 years. The VGF was the basis on which the bid was awarded to Adani Ports and Special Economic Zone Ltd (APSEZ), which quoted the least grant of Rs 16.35 billion in an auction in 2015. “The government of India has finally sanctioned the VGF,” said Subrata Tripathy, chief executive, ports, APSEZ. “We are expecting the VGF to come in so that the project gets going.” VGF is a one-time grant given by the central government for supporting public-private-partnership (PPP) projects in infrastructure that are economically justified but fall short of financial viability. Vizhinjam is being developed as a container transhipment port with an investment of Rs 55.52 billion. The Kerala government will collect a premium/revenue share from the private operator from the 16th year of operations. See also: Adani Ports launches new arm Tajpur Sagar for Bengal portCentre approves development of container terminal at Deendayal Port

Next Story
Infrastructure Urban

Aadhaar Authentications Cross 27 Billion in FY25

Aadhaar authentication transactions surged past 27.07 billion in FY 2024–25, including 2.47 billion in March alone, reflecting its growing adoption across sectors such as banking, finance, telecom, and public service delivery. Since its inception, the cumulative number of Aadhaar authentication transactions has exceeded 148 billion.The Unique Identification Authority of India’s (UIDAI) AI/ML-based face authentication technology is also witnessing a sharp rise in usage. In March 2025 alone, over 150 million face authentication transactions were recorded. This biometric modality is now used ..

Next Story
Infrastructure Urban

IEPFA Holds Preparatory Meet for 'Niveshak Shivir' Initiative

The Investor Education and Protection Fund Authority (IEPFA), under the Ministry of Corporate Affairs, Government of India, hosted a preparatory meeting on April 28, 2025, with Nodal Officers from stakeholder companies via video conference. The session, chaired by IEPFA CEO Smt. Anita Shah Akella, focused on finalising operational plans for the upcoming ""Niveshak Shivir"" initiative—a joint effort between IEPFA and the Securities and Exchange Board of India (SEBI).""Niveshak Shivir"" aims to improve investor services and streamline the claims process by reaching out to cities with a high nu..

Next Story
Infrastructure Urban

India, France Sign Deal for 26 Rafale-Marine Jets for Navy

India and France have signed an Inter-Governmental Agreement (IGA) for the acquisition of 26 Rafale-Marine aircraft for the Indian Navy, comprising 22 single-seater and four twin-seater jets. The deal also includes training systems, simulators, associated equipment, weapons, and performance-based logistics, along with additional equipment for the Indian Air Force’s existing Rafale fleet.The IGA was signed by India’s Defence Minister Rajnath Singh and French Minister of Armed Forces Sébastien Lecornu. The agreement, along with supply protocols for aircraft and weapons, was exchanged in the..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?