THIRUVANANTHAPURAM: Continuing with the state's efforts to get unconditional Viability Gap Funding (VGF) support for Vizhinjam Seaport, Chief Minister Pinarayi Vijayan wrote to Prime Minister Narendra Modi seeking to intervene and withdraw the union finance ministry's norm making it mandatory for the state to repay the VGF.
In his letter, Pinarayi pointed out that since the union finance ministry introduced the VGF scheme in 2005, never in the past such a payback has been demanded by MoF under the VGF scheme.
Vizhinjam project would be the only exception in the country where the union government has demanded a payback.
"As the Rs 817.80 core provided by the Government of India is to be repaid on a Net Present Value (NPV) basis, this would result in repayment of Rs 10,000 to 12,000 crore from the state exchequer in actual terms, computed on projected interest rates and revenue realisation from the port over the period of repayment," said the CM.
If the Centre insists on payback, the assistance provided would be a loan. It's contrary to the intent of the scheme, he added.
Pinarayi pointed out that the Vizhinjam project is structured to avail Viability Gap Funding under the scheme of financial support to public-private partnerships in infrastructure by the Department of Economic Affairs.