817 crore fund for Vizhinjam: CM to meet PM

THIRUVANANTHAPURAM: Chief Minister Pinarayi Vijayan will meet Prime Minister Narendra Modi to secure the central government's Viability Gap Fund (VGF) of Rs 817.80 crore for Vizhinjam port. The Chief Minister will go to Delhi to invite the Prime Minister for the commissioning of the port. The Chief Minister will raise the issue of VGF in this meeting.

The second, third and fourth phases of Vizhinjam port will be completed by December 2028 and the capacity of the port will be 45 lakh containers per annum. During the 40-year contract period, the revenue will rise to Rs 2,15,000 crore. It is estimated that the government will get an income of 48000 crores in 36 years. With this, the Center tightened the condition that 20 percent of the revenue received by the government from the port should be paid to the Centre instead of paying 817.80 crores as VGF to the port. If this is accepted, the state will have to pay back about Rs 12,000 crore including interest rate changes. An agreement should also have to be made between the state government and the centre to return the money. Or else the central government can reduce the amount given to Kerala through various schemes.

It was agreed 10 years ago that 40% of the project amount of 4089 crores fixed in the first phase of Vizhinjam will be allocated as VGF by the centre and the state. According to this, the Center and Kerala should have paid 817.8 crores each. This will be 40% of the project cost. The central position is that the state should pay 20% of the revenue that the state gets from the port, as the centre spends 20% of the project cost. VGF is to be paid to Adani after commissioning. Crisis is happening when payment day is closing in.

Annual additional revenue to the Center from Vizhinjam: ₹6000 crore

GST received by the Center when 70 ships reached during the trial run: ₹182 crore

State outlay for port construction and facilities: ₹4777.14 crore

"It was the Empowered Committee of the Union Finance Ministry that had recommended the allocation of 817.80 crore as VGF. Pressure will be put to receive this."

- Minister VN Vasavan