THIRUVANANTHAPURAM: The Kerala government has entered into a supplementary concession agreement with Adani Vizhinjam Port Private Limited regarding the Vizhinjam International Port project.
The revised agreement, signed on Thursday, follows the withdrawal of arbitration proceedings and is intended to benefit the state, according to Port Minister V. N. Vasavan.
"Under the new agreement, we will start receiving revenue from the port operations by 2034, instead of 2039 as stated in the original agreement. All phases of the project will now be completed by 2028, instead of 2045. Furthermore, the port's minimum installed capacity will be increased from 30 lakh TEUs to 45 lakh TEUs," said the minister.
The minister also highlighted significant cost reductions for the state under the new terms. The state's share of Viability Gap Funding (VGF) has been reduced by Rs 408.9 crore, from Rs 774 crore to Rs 365.1 crore.
Of this, the first instalment of Rs 189.9 crore will be provided immediately, while the remaining Rs 175.2 crore will be paid upon the project's completion in 2028.
Additionally, the state has been exempted from paying Rs 30 crore in compensation to the concessionaire for delays in land acquisition. "This exemption further underscores the state's advantages under the new agreement," Vasavan noted.
The board of Vizhinjam International Seaport Limited will convene shortly to finalise the port's commissioning date. The minister added that the port is expected to become operational in December this year or January 2025.