Kerala government to hand over provisional completion certificate for Vizhinjam port, marking beginning of commercial operations

Kerala government to issue provisional completion certificate for Vizhinjam international seaport, boosting economic growth and international trade.

Marking another milestone in the maritime history of the State, the Kerala government will issue the provisional completion certificate for the Vizhinjam international seaport on Wednesday, marking the beginning of the informal commercial operation of the port. However, the official commissioning of the port will be done either later this month or by the next month, based on the convenience of the Prime Minister.

The port, which began limited-scale operations on July 12 as part of a trial run, has witnessed the docking of a total of 70 cargo ships, including ultra-large mother vessels, handling around 1.47 TEUs (twenty-foot equivalent units). Close to 90% of the port infrastructure work has been completed, and the remaining work will be done in the coming months, but it is not a hindrance to the full-scale commercial operations of the port, according to sources.

In a statement issued, Ports Minister V.N. Vasavan has said that agencies such as the Vizhinjam International Seaport Limited, the special purpose vehicle (SPV) set up to implement the Vizhinjam deep water multipurpose seaport on a public-private partnership basis with the Adani Vizhinjam Private Port Limited (AVPPL) and the Indian Institute of Technology, Madras, have jointly completed all the steps as per the agreement. The functioning of the port will pave the way for a significant change in Kerala’s international trade. This achievement will also boost the economic growth of the State, he said.

Three days ago, the Kerala government entered into a supplementary concession agreement with the AVPPL extending the project period to five more years and stipulating that the second and third phases of the port works be completed by 2028 instead of 2045 fixed in the first contractual agreement. As part of the new agreement, the State government will get its revenue share from 2034 itself, 15th year after the port began operations if it had been commissioned in 2019.

Of the ₹8,867 crore project (phase one), ₹5,595 crore has to be borne by the State government. The State share includes its VGF share, construction of the access road, rail connectivity, land acquisition, and compensation for livelihood loss. So far, the State has spent ₹2,159.39 crore of the ₹5,595 crore, while the Adani Group contributed ₹2,454 crore. The State has to ensure the road and rail connectivity to the port. The rail connectivity to the port will be ready by around 2028, while the road link will be established soon for which the works are underway.