Kerala Plans Milestone Expansion for Vizhinjam Seaport

Kerala Chief Minister Pinarayi Vijayan announced a supplementary concession agreement with Adani Vizhinjam Port, extending the timeline for seaport development. The project will now proceed in phases, with completion expected by 2028. Delays have incurred a penalty and a new revenue-sharing agreement benefits the state sooner.

Kerala has taken a significant step forward in maritime infrastructure with the signing of a supplementary concession agreement between the state government and Adani Vizhinjam Port Private Limited. This agreement, announced by Chief Minister Pinarayi Vijayan, ensures the continued development of the Vizhinjam International Seaport, with commissioning of its first phase expected next month.

Under the new terms, the project is set to expand significantly, with its second and third phases aimed for completion by 2028 at a substantial investment of Rs 10,000 crore. Once completed, the port's capacity will increase to handle 30 lakh TEUs, marking a transformative impact on Kerala's global connectivity.

The project's timeline extension accommodates previous delays due to the Covid-19 pandemic and natural disasters. A penalty of Rs 219 crore was issued, though Rs 43.8 crore will be paid immediately. Should the project fall short of the new timeline, consequences include the cancellation of the extension, ensuring accountability in this ambitious endeavor.

(With inputs from agencies.)