PM Modi will inaugurate Vizhinjam Seaport on May 2nd after the VGF deal, following the Dec 2024 launch. The port’s strong cargo handling positions Kerala as a major trade hub.
Prime Minister Narendra Modi is set to officially commission the Vizhinjam International Seaport on May 2nd , marking a significant step forward for Kerala’s maritime ambitions. The inauguration is scheduled for 11 a.m.
This formal opening follows the recent resolution of a dispute between the state and union governments regarding the sharing of the Viability Gap Fund (VGF) for the project. A crucial agreement, signed on April 9th, secures the Union government’s commitment of ₹817.80 crore as its VGF contribution to Adani Vizhinjam Port Private Limited (AVPPL), the project’s concessionaire. A tripartite agreement involving the Centre, AVPPL, and a consortium of banks has also been finalised, with the state government agreeing to share 20% of the port’s revenue with the Union government.
In March, the Ministry of Environment, Forest, and Climate Change granted environmental clearance for the second and third phases of the seaport’s development, paving the way for future expansion.
Kerala Ports Minister V.N. Vasavan has emphasised that with the VGF agreement now in place, all formalities for the first phase of the Vizhinjam port have been completed. He states that Kerala is now poised to assume a leading position in global maritime trade.
The port, which initiated trial operations on July 13, 2024, and commenced commercial operations on December 3rd, has already demonstrated strong performance. It has handled 263 ships and processed 5.36 lakh TEUs (Twenty-foot Equivalent Units) of containers. Notably, in February and March of this year, Vizhinjam ranked first in cargo movements among ports on the south and west coasts of India, achieving a significant milestone by handling one lakh TEUs per month.
The commissioning of the Vizhinjam Seaport on May 2nd is anticipated to significantly boost Kerala’s economy and its role in international trade.
Source: New Indian Express
