Prime Minister Narendra Modi will formally commission the Vizhinjam International Seaport in Kerala on May 2. The commissioning of the port will mark the formal unveiling of the country’s first deep-sea transshipment terminal, which is expected to revolutionise maritime logistics and trade connectivity in the region.
The port began commercial operations in December last year, following successful trial runs between July and December. Since then, it has received over 250 vessels and handled more than 5 lakh TEUs (Twenty-foot Equivalent Units) of containers.
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The formal inauguration had been delayed due to technical issues. However, the port has since resolved several pending matters, clearing the path for future development. The Centre and the state government have also resolved disagreements over sharing the Viability Gap Fund (VGF) for the project, culminating in an agreement signed on April 9. Before this, in March, the Ministry of Environment, Forest and Climate Change (MoEFCC) granted environmental clearance for the second and third phases of the port’s development.
As part of the agreement, the Centre has committed to contributing Rs 817.80 crore as its share of the VGF to Adani Vizhinjam Port Private Limited (AVPPL), the project’s concessionaire. A tripartite agreement was signed among the Centre, AVPPL, and the consortium of banks involved. The state government has also agreed to share 20% of the port’s revenue with the Centre.
The port has already proven economically significant, contributing Rs 32 crore in taxes to the Kerala government and generating Rs 181 crore in revenue for Adani Vizhinjam Port Pvt Ltd (AVPPL). Its strategic positioning boosts its relevance in international maritime trade.
