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

Related Stories

Gold Stories

Next Story
Resources

Schindler named among Forbes’ World’s Best Employers 2026

Schindler has been named among Forbes’ World’s Best Employers 2026, a global ranking recognising companies for their workplace environments.Compiled by Forbes in partnership with Statista, the ranking is based on independent employee feedback, including whether employees would recommend their organisation to friends and family.The company said the recognition reflected its focus on creating a workplace where employees can develop their expertise and build careers. ..

Next Story
Infrastructure Urban

India needs an export-execution mindset: Vishesh Jain

Interview with Vishesh Jain, Founder & CEO, EximpleWhat gaps in India’s global trade ecosystem led you to build Eximple, and what problem did you see businesses struggling with most?Eximple came out of a problem that all three founders had seen from different choke points in the trade ecosystem. India has millions of MSMEs and manufacturers, and many of them can make products that are genuinely competitive on quality. Yet only a small fraction is able to build meaningful international businesses. In our experience, the gap is usually not manufacturing capability; it is the ability to exe..

Next Story
Building Material

Nuvoco reports 13.5% revenue growth in Q2 FY27

Nuvoco Vistas Corp. Ltd. reported consolidated revenue of Rs 27.9 billion for Q2 FY27, up 13.5% year on year. Cement sales volume rose 9% to 4.7 million tonnes (MMT), while EBITDA increased 11% to Rs 4.11 billion.The company said it began its cement operations in 2014 with a 2.3 MMT per annum (MMTPA) operation at Nimbol. It now aims to reach 35 MMTPA of cement capacity by FY28, nearly 15 times its initial capacity. Its portfolio spans cement, ready-mix concrete and modern building materials.On sustainability and cost efficiency, Nuvoco partnered with CleanMax for a 46.4 MW wind-solar hybrid re..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code