Kerala and Centre Sign Rs 8.17 Bn Loan MoU for Vizhinjam Port
PORTS & SHIPPING

Kerala and Centre Sign Rs 8.17 Bn Loan MoU for Vizhinjam Port

The Union government, a bank consortium, and Adani Ports, which manages the Vizhinjam deep-sea port, signed a tripartite Memorandum of Understanding (MoU) to provide Viability Gap Funding (VGF) of Rs 8.17 billion for the project. Additionally, the Centre and the Kerala government entered into an agreement under which the state will share 20 per cent of its revenue from the port with the Union government.

The Vizhinjam deep-water port, developed under a public-private partnership by Adani Ports and Special Economic Zone (APSEZ), is being constructed at an estimated cost of Rs 88.67 billion. APSEZ is India’s largest port developer and part of the Adani Group.

The Kerala government has accepted the VGF as a loan from the Centre after earlier appeals to treat it as a grant were declined. A state cabinet meeting, chaired by Chief Minister Pinarayi Vijayan, approved this decision. The Centre has stipulated that the loan be repaid under the Net Present Value (NPV) model, despite the state’s request to waive repayment conditions.

Previously, the state government had drawn comparisons with the Outer Harbour Container project at Tuticorin Port, which received grant-based funding without repayment obligations. However, the Union government maintained that the Vizhinjam project could not be equated with the Tuticorin initiative.

The Vizhinjam International Seaport (VISL) has completed the first phase of construction, and over 250 cargo vessels have already docked at the port, handling more than 6 lakh Twenty-foot Equivalent Units (TEUs). The port received its commercial commissioning certificate on December 4, 2023, following the successful completion of its trial run. Road and rail connectivity works are on-going and are expected to be completed by 2028.

News source: The Print

The Union government, a bank consortium, and Adani Ports, which manages the Vizhinjam deep-sea port, signed a tripartite Memorandum of Understanding (MoU) to provide Viability Gap Funding (VGF) of Rs 8.17 billion for the project. Additionally, the Centre and the Kerala government entered into an agreement under which the state will share 20 per cent of its revenue from the port with the Union government. The Vizhinjam deep-water port, developed under a public-private partnership by Adani Ports and Special Economic Zone (APSEZ), is being constructed at an estimated cost of Rs 88.67 billion. APSEZ is India’s largest port developer and part of the Adani Group. The Kerala government has accepted the VGF as a loan from the Centre after earlier appeals to treat it as a grant were declined. A state cabinet meeting, chaired by Chief Minister Pinarayi Vijayan, approved this decision. The Centre has stipulated that the loan be repaid under the Net Present Value (NPV) model, despite the state’s request to waive repayment conditions. Previously, the state government had drawn comparisons with the Outer Harbour Container project at Tuticorin Port, which received grant-based funding without repayment obligations. However, the Union government maintained that the Vizhinjam project could not be equated with the Tuticorin initiative. The Vizhinjam International Seaport (VISL) has completed the first phase of construction, and over 250 cargo vessels have already docked at the port, handling more than 6 lakh Twenty-foot Equivalent Units (TEUs). The port received its commercial commissioning certificate on December 4, 2023, following the successful completion of its trial run. Road and rail connectivity works are on-going and are expected to be completed by 2028. News source: The Print

Next Story
Infrastructure Urban

DDA Approves Rs 87.2 Billion Budget for 2025-26

The Delhi Development Authority (DDA) has approved a budget of Rs 87.2 billion for the financial year 2025-26, with a strong emphasis on civic infrastructure development, green space rejuvenation, housing, and sports facilities, according to an official statement. Chaired by Lieutenant Governor V.K. Saxena, the budget meeting highlighted several large-scale projects, including the revitalisation of the Yamuna floodplain, creation of expansive parks, and upgraded civic amenities. Out of the total outlay, Rs 41.4 billion has been earmarked for capital expenditure, covering new roads, infrastruc..

Next Story
Infrastructure Energy

Vi Taps Cisco to Power Next-Gen Network

Telecom operator Vodafone Idea (Vi) has joined hands with US-based tech major Cisco Systems to revamp its transport network infrastructure across India. The strategic partnership aims to enhance network performance, scalability, and user experience for both retail and enterprise customers. As part of the agreement, Vi will deploy Cisco’s advanced Multiprotocol Label Switching (MPLS) technology to create a high-capacity, software-driven transport network. This will significantly improve the telecom player’s ability to manage surging data traffic and support data-heavy digital services such..

Next Story
Building Material

GPT Infra Commissions New Steel Girder Plant Near Kolkata

GPT Infraprojects announced the successful commissioning of its steel girder and components manufacturing facility in West Bengal on April 24, 2025. Located in Village Majinan, Hooghly district—about 60 km from Kolkata—the plant begins operations with an initial capacity of 10,000 metric tonnes per annum (MTPA). The company stated that the facility is in the process of securing RDSO (Research Designs and Standards Organisation) approval for manufacturing steel bridge girders. Once approved, this unit is expected to become a key asset for the company’s steel bridge segment, catering to c..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?