Centre gives final nod to VGF for Vizhinjam port project

07 Nov 2022 CW Team

The Centre has granted final approval for extending viability gap funding (VGF) of Rs 8.18 billion to the Vizhinjam International Deepwater Multipurpose Seaport being built by the Adani Group, even as protests from local fishermen and other delays continue to dog the project.

The port is meant to cut India鈥檚 dependence on Colombo to send and receive container cargo. The Vizhinjam project is entitled to receive a viability grant funding of Rs 16.35 billion, to be shared by the Centre (Rs 8.18 billion) and the Kerala government (Rs 8.17 billion), making it the first and only port project to be offered such a grant. Of this, Rs 1,227 crore will be given during the construction phase and the balance during the operation period spanning 40 years and extendable by another 20 years.

The VGF was the basis on which the bid was awarded to Adani Ports and Special Economic Zone Ltd (APSEZ), which quoted the least grant of Rs 16.35 billion in an auction in 2015.

鈥淭he government of India has finally sanctioned the VGF,鈥� said Subrata Tripathy, chief executive, ports, APSEZ. 鈥淲e are expecting the VGF to come in so that the project gets going.鈥�

VGF is a one-time grant given by the central government for supporting public-private-partnership (PPP) projects in infrastructure that are economically justified but fall short of financial viability.

Vizhinjam is being developed as a container transhipment port with an investment of Rs 55.52 billion. The Kerala government will collect a premium/revenue share from the private operator from the 16th year of operations.

Vizhinjam; APSEZ; Adani Group; Kerala; fishermen

Infrastructure Transport

15 May 2025

Mumbai-Ahmedabad Bullet Train Set to Launch by 2028

India鈥檚 first bullet train is set to revolutionize high-speed travel along the western corridor, with the Mumbai-Ahmedabad high-speed rail project aiming for a 2028 launch. This announcement marks a major milestone in India鈥檚 infrastructure goals, as it promises to reduce travel time between the two economic hubs from eight hours to just three.Spanning a planned 508-kilometre stretch, the corridor stands as a flagship example of Indo-Japanese collaboration in technology and engineering. Once operational, the train is expected to transform intercity mobility and place India among the select..

Infrastructure Transport

15 May 2025

Mumbai-Gandhinagar Train Service Enhances Passenger Capacity

The Mumbai Central鈥揋andhinagar Capital Vande Bharat Express has increased its passenger capacity by adding four additional AC chair car coaches to meet the growing commuter demand on one of India鈥檚 busiest business corridors. This upgrade, effective from 11 May, raised the train鈥檚 seating capacity from 1,128 to 1,440 passengers, allowing it to serve 936 more passengers daily in both directions. The increase was described as a practical measure to accommodate the surging demand on the busy Mumbai鈥揂hmedabad鈥揋andhinagar route, which regularly operates at over 150 percent seat occupancy...

Infrastructure Urban

15 May 2025

Delhi Plans 12 Sewage Plants to Clean Najafgarh Drain Efficiently

Delhi鈥檚 ambitious plan to improve the water quality of the Yamuna River has gained significant momentum as the Delhi Jal Board (DJB) has begun work on 12 new sewage treatment plants (STPs) aimed at reducing the volume of untreated sewage being discharged from the Najafgarh Drain.This initiative forms part of the ongoing efforts to clean the Yamuna and restore the river鈥檚 health, which has long been a critical environmental issue for the national capital. Given the alarming pollution levels in the Yamuna, experts and officials consider this project a vital step toward addressing the persist..