THIRUVANANTHAPURAM: Prime Minister Narendra Modi is set to inaugurate the Vizhinjam International Seaport on May 2. Kerala Ports Minister V N Vasavan confirmed receiving an official intimation from the Prime Minister’s Office. The function will be held at 11am at Vizhinjam.
The formal inauguration is happening four months after the port launched commercial operations in December 2024. The prime minister’s visit follows the resolution of the dispute between the state and Union governments over sharing the Viability Gap Fund (VGF) for the project. A formal agreement was signed on April 9 to settle the matter.
Under the deal, the Union government will contribute Rs 817.80 crore as its share of the VGF to Adani Vizhinjam Port Private Limited (AVPPL), the project’s concessionaire.
A tripartite agreement was signed between the Centre, AVPPL, and the consortium of banks involved. Additionally, the state government has agreed to share 20% of the port’s revenue with the Union government.
In March, the Ministry of Environment, Forest, and Climate Change granted environmental clearance for the second and third phases of the seaport’s development.
‘Kerala poised to take leading position in maritime trade’
With the VGF agreement signed, all formalities for the first phase of the Vizhinjam port have been completed. Vasavan said with the handover of the port to the state, Kerala is poised to take a leading position in global maritime trade.
The port began trial operations on July 13, 2024, and transitioned to commercial operations on December 3. Since then, it has handled 263 ships and processed 5.36 lakh TEUs (Twenty-foot Equivalent Units) of containers. In February and March this year, Vizhinjam ranked first in cargo movements among ports on the south and west coasts of India. It also achieved a milestone by handling 1 lakh TEUs per month.
Timeline
● June 10, 2015: Cabinet approves awarding the project to Adani Ports and SEZ
● August 17, 2015: Kerala government and Adani Ports sign the construction agreement
● December 3, 2019: First deadline for completing port works is missed
● June 2023: Government sets a new deadline for Adani to complete the work
● July 13, 2024: Trial operations begin
● Dec 3, 2024: Commercial operations commence
● April 9, 2025: Agreement on VGF signed
● May 2: Prime Minister set to commission the port