Importance of Vizhinjam Port Emphasized in Kerala Budget

Synopsis
Key Takeaways
- Vizhinjam Port is central to Kerala's budget.
- Phases to be completed by December 2028.
- Investment of Rs 9,500 crore by AVPPL.
- State shoulders initial financial burdens.
- Plans for a new shipyard in southern Kerala.
Thiruvananthapuram, Feb 7 (NationPress) The upcoming Adani Vizhinjam Port has taken a prominent position in the final comprehensive budget of the second Pinarayi Vijayan administration, unveiled by State Finance Minister K.N. Balagopal during the Kerala Legislative Assembly session on Friday.
The front cover of Balagopal’s fifth consecutive budget showcases an illustration of a cargo-filled vessel arriving at the port, highlighting the state government’s focus on this mega port initiative.
Balagopal pointed out that the majority of physical infrastructure projects revealed in earlier budgets have either reached completion or made significant advancements.
“It has been resolved to expedite the development of the second, third, and fourth phases of the Vizhinjam Port, now projected for completion by December 2028—well in advance of the initially agreed timeline. This is a remarkable achievement in Kerala, where extensive projects frequently encounter delays and budget overruns. Initially, these phases were expected to be completed only by 2045,” Balagopal remarked.
The Minister further emphasized that Adani Vizhinjam Port Private Limited (AVPPL), the port’s concessionaire, will allocate around Rs 9,500 crore to finalize the construction by 2028. He also noted that, up to this point, all expenses linked to the port—which were initially intended to be shared by the Union and State governments—have been fully covered by the State.
“At present, the State has had to shoulder the financial responsibilities that were originally promised by the Union Government as Viability Gap Funding. Furthermore, it has been suggested to set up a shipyard in southern Kerala, considering the country's shortfall in maritime logistics and shipbuilding capabilities. The State Government will persist in discussions with the Union Government regarding this, with the hope that the Centre will take the initiative in establishing the shipyard. The State remains dedicated to meeting its obligations in this endeavor,” Balagopal asserted.
He also underscored that, with the completion of the Vizhinjam Port and the anticipated increase in container traffic, the State Government has opted to hasten the enhancement of State highways to match the pace of national highway advancements.
“Participation of ministers at the World Economic Forum in Davos has notably increased investor interest in Kerala. The state’s ambitious plans for maritime and logistics infrastructure, showcased at the recent Vizhinjam Investment Conclave, garnered an enthusiastic reception from international industry leaders,” Balagopal added.
“Our ultimate objective is to establish Vizhinjam not just as a transshipment hub but as a significant export-import (EXIM) port, drawing inspiration from top global ports such as Singapore, Rotterdam, and Dubai. In line with this vision, I am pleased to announce the Vizhinjam-Kollam-Punalur Growth Triangle (VKP-GT), which will promote regional economic growth,” he concluded.