Centre competing to claim credit for Vizhinjam project; Kerala being pushed into debt trap, says Minister V Sivankutty

Saturday 24 January 2026 8:02 PM IST

THIRUVANANTHAPURAM: Kerala's Labour Minister V. Sivankutty said that the central government is competing to claim credit for the Vizhinjam project. However, he alleged that the Centre is showing neglect towards Kerala. He said that unfair and unjust conditions, which are not imposed on any other project in the country, are being forced on the state in connection with the Vizhinjam project.

Sivankutty pointed out that the central government sanctioned Rs 1,411 crore for the Thoothukudi outer harbour project in Tamil Nadu as a grant that does not have to be repaid. But when it comes to Kerala, the Centre's approach changes. He said the Rs 817.80 crore given by the Centre for the Vizhinjam project is being treated as a loan, which Kerala has to repay with interest, calling it a strange and unjust condition.

He further said that once the port starts making profits, Kerala will have to begin repaying the amount. By the time the repayment is completed, Kerala would end up paying nearly Rs 12,000 crore to the Centre, including interest and revenue share. The minister questioned how giving just Rs 817 crore and trying to recover more than ten times the amount can be called development assistance.

Sivankutty said converting even the small contribution from the Centre into a loan and pushing Kerala into a debt trap is a challenge to the federal system. He asked why the justice given to Thoothukudi is being denied to Vizhinjam. The minister added that the real architects of the Vizhinjam project are the people of Kerala and a determined state government.