Kerala Government to borrow Rs 850 crore from HUDCO for Vizhinjam port project

13 Feb 2023 , 02:44 AM

According to the agreement, Kerala government will have to provide Adani Ports Rs 400 crore when 30% of the breakwater is completed, and the latter has  been knocking on the government’s door for quite some time.

The state government has been caught in a debt trap, and its financial position is in shambles, so it is unable to honour its commitment to the port builder. With time running out, the Pinarayi Vijayan administration has decided to borrow Rs 400 crore from HUDCO.

The Vizhinjam port has been a dream project of successive governments, and it was finally approved by the then-Oommen Chandy government (2011-16), with Adani Ports as the sole bidder.

The port project will cost Rs7,525 crore in total, with the state government contributing 500 acres of land.

Adani Ports, the project’s sole bidder, had requested a Rs1,635 crore grant for construction purposes.

Once completed, this will be one of India’s deepest ports, with 80 percent of the country’s cargo trans-shipments passing through here.

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