Kerala CM Challenges Centre's Repayment Condition on Vizhinjam Seaport's VGF

Kerala's Chief Minister Pinarayi Vijayan has urged Prime Minister Modi to forego the repayment condition attached to the Viability Gap Funding (VGF) for the Vizhinjam Seaport project. Vijayan argues that the condition contradicts standard VGF guidelines, which typically do not require repayment, labeling it as a capital grant, not a loan.

The Kerala Chief Minister, Pinarayi Vijayan, has made a formal appeal to Prime Minister Narendra Modi, requesting the reconsideration of an imposed repayment condition on the Rs. 817.80 crore Viability Gap Funding (VGF) provided for the Vizhinjam Seaport project.

In his letter, Vijayan highlighted that the VGF, which is intended to bolster Public-Private Partnerships (PPP) in infrastructure, has never required repayment as a loan in similar cases, citing the Tuticorin Port's Outer Harbour project.

He further accused the Centre of vindictive actions against Kerala, noting a deviation from VGF guidelines that previously permitted grants for projects like the Kochi Metro without repayment stipulations.

(With inputs from agencies.)