Kerala Accepts Rs.817.8 Crore Central Aid for Vizhinjam Port

28 Mar 2025 CW Team

Funding Dispute Between Kerala and the Centre Initially, the Kerala government had requested the Centre to release the VGF share without repayment conditions, arguing that the Outer Harbour Container project at Tuticorin Port, which follows a similar financial model, was not subjected to such a requirement. However, the Union government rejected this request, stating that the two projects could not be compared in terms of financial structuring.

In October last year, Chief Minister Vijayan had written to Finance Minister Nirmala Sitharaman, urging her to reconsider the repayment condition. He argued that the Department of Economic Affairs' Empowered Committee’s decision to impose repayment would create a financial burden of ?10,000–?12,000 crore for the state.

Despite Kerala’s objections, the state has now agreed to accept the funds under the Centre’s terms, ensuring the continuation of the Vizhinjam Port project, which is being developed in collaboration with Adani Ports.

Significance of Vizhinjam Port The Vizhinjam International Seaport, located near Thiruvananthapuram, is a strategically significant deepwater port designed to handle large container ships and enhance India's maritime trade competitiveness.

Once completed, it is expected to:

Reduce India’s dependence on foreign transshipment hubs like Colombo and Singapore.

Boost Kerala’s economy by generating employment and attracting global shipping companies.

Improve logistics efficiency, reducing turnaround times for cargo movement.

Despite funding hurdles, the first phase of the project is nearing completion, with operations expected to begin soon. The acceptance of central funds, though under conditional terms, ensures that the state can move forward with infrastructure development, port expansion, and associated connectivity projects.

The Kerala government has decided to accept the central government’s Rs 8.178 billion Viability Gap Funding (VGF) for the Vizhinjam International Port, agreeing to repay the amount under the Net Present Value (NPV) model. The decision was taken during a state cabinet meeting chaired by Chief Minister Pinarayi Vijayan. Funding Dispute Between Kerala and the Centre Initially, the Kerala government had requested the Centre to release the VGF share without repayment conditions, arguing that the Outer Harbour Container project at Tuticorin Port, which follows a similar financial model, was not subjected to such a requirement. However, the Union government rejected this request, stating that the two projects could not be compared in terms of financial structuring. In October last year, Chief Minister Vijayan had written to Finance Minister Nirmala Sitharaman, urging her to reconsider the repayment condition. He argued that the Department of Economic Affairs' Empowered Committee’s decision to impose repayment would create a financial burden of ?10,000–?12,000 crore for the state. Despite Kerala’s objections, the state has now agreed to accept the funds under the Centre’s terms, ensuring the continuation of the Vizhinjam Port project, which is being developed in collaboration with Adani Ports. Significance of Vizhinjam Port The Vizhinjam International Seaport, located near Thiruvananthapuram, is a strategically significant deepwater port designed to handle large container ships and enhance India's maritime trade competitiveness. Once completed, it is expected to: Reduce India’s dependence on foreign transshipment hubs like Colombo and Singapore. Boost Kerala’s economy by generating employment and attracting global shipping companies. Improve logistics efficiency, reducing turnaround times for cargo movement. Despite funding hurdles, the first phase of the project is nearing completion, with operations expected to begin soon. The acceptance of central funds, though under conditional terms, ensures that the state can move forward with infrastructure development, port expansion, and associated connectivity projects.

Infrastructure Transport

06 Aug 2026

Surya Roshni delivers customised lighting for NCRTC RRTS stations

Surya Roshni has supplied customised indoor lighting solutions for 18 elevated stations on the National Capital Region Transport Corporation's (NCRTC) Rapid Rail Transit System (RRTS), strengthening its presence in India's infrastructure lighting segment.The project involved the design and deployment of lighting systems for platforms, concourses, foot overbridges (FOBs) and back-of-house (BOH) areas. According to the company, the luminaires were developed specifically to meet NCRTC's design, operational and performance requirements rather than using standard products.Surya introduced two custo..

Real Estate

06 Aug 2026

Hilton debuts Tapestry Collection brand in Vietnam

Hilton has opened NHAAN Resort & Spa Hoi An, Tapestry Collection by Hilton, marking the debut of the Tapestry Collection brand in Vietnam and expanding its lifestyle hospitality portfolio in Southeast Asia.Located along the Co Co River in Cam Thanh village, the 174-key resort provides access to Hoi An Ancient Town, Cua Dai Beach and the Cam Thanh Nipa Forest. The property has been designed by Vietnamese architect Vo Trong Nghia, incorporating biophilic architecture, locally sourced materials and riverfront landscapes.The resort offers a mix of guest rooms and suites, including family-frien..

Building Material

06 Aug 2026

Electrent expands lithium energy storage system portfolio

Electrent Energy has expanded its lithium-based energy storage portfolio with the launch of the ESS 850 and ESS 1050, targeting compact and maintenance-free power backup solutions for Indian homes.The new systems integrate a Home UPS and a LiFePO4 lithium battery into a single unit, extending the company's product range following the launch of its ESS 1350 and ESS 2500 models.Designed for apartments and smaller homes, the ESS 850 provides up to 1 hour 15 minutes of backup, while the ESS 1050 offers up to 1 hour 45 minutes on a typical 400 W household load. The systems can power essential appli..