New company formed; Vizhinjam Port City on the rise

THIRUVANANTHAPURAM: In a major move to accelerate development in and around Vizhinjam, the Kerala government has initiated the formation of a new company under the Kerala Infrastructure Investment Fund Board (KIIFB). Drawing inspiration from global port cities such as Dubai and Singapore, the initiative aims to transform Vizhinjam into a world-class logistics and industrial hub.

An application to register the company — likely to be named either KIFCORE Limited or KIFDAC Limited — was submitted on Wednesday. KIIFCON, the consulting arm of KIIFB, has been tasked with handling the registration and formalities related to the company's formation.

The company’s operational region will encompass areas linked to key transport corridors, including the Kollam-Shenkottai National Highway, Kollam-Shenkottai railway line, the proposed greenfield national highway, the Vizhinjam-Kollam highway, and the Punalur-Nedumangad-Vizhinjam road.

Under this model, entrepreneurs — including foreign investors — need only present their project proposals to the company. The required land in the desired location will be acquired, and construction will be carried out according to the project plan. All necessary infrastructure will be provided before handing it over. Investors will not need to follow up with the government or officials for various approvals. A similar development model is being implemented by the Adani Group centred around Mundra Port in Gujarat.

The goal is to build a city integrating logistics and IT sectors, and land will be purchased at a reasonable price. Facilities planned for investors include MSME clusters, logistics parks, processing hubs, transport corridors, warehousing infrastructure, and bulk storage spaces. The Andhra Pradesh Industrial Infrastructure Corporation and Telangana’s State Industrial Infrastructure Corporation have been identified as model frameworks.

KIIFB will provide Rs 1000 crore
Rs 3 lakh crore: Expected investment
Rs 20 crore: Initial capital
10,000: Direct employment opportunities
1,456 sq. km: Will become an industrial zone

Townships and commercial centres will come up

• It will help increase agricultural production and generate related industrial output and employment.
• Numerous townships and commercial centres will arise in the Kollam and Thiruvananthapuram regions
• New business prospects for the IT and IT-enabled services sectors
• Potential for new tourism ventures—travel, hotel, and restaurant businesses will come up
• Component manufacturing and assembly units for electronic equipment
• Opportunities for new startup ventures

There is no time to waste in developing industries related to the port. The main obstacle is land availability. The new company can overcome that.

— K.N. Balagopal, Finance Minister