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State accepts Centre's VGF share of ₹817.80 cr for Vizhinjam port development
The New Indian Express Thiruvananthapuram
|March 27, 2025
Estimates that the actual repayment amount would be ₹10,000 crore to ₹12,000 crore
The cabinet meeting on Wednesday decided to accept the Union government's share of the viability gap funding (VGF) for the development of Vizhinjam port. The state had earlier opposed the repayment condition set by the Centre for the ₹817.80-crore VGF.
With the central share required to be repaid in net present value terms through premium sharing, the state government estimates that the actual repayment would be ₹10,000 crore to ₹12,000 crore.
"The state government had requested a rethink on the direction for repayment in net present value. The Union government did not favour that. The cabinet decision is for the state's future development," Ports Minister V N Vasavan said in a statement.
The first phase of the project costs ₹7,700 crore, of which ₹4,600 crore is spent by the state government, he said.
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