VGF Issue of Vizhinjam Port

The Government of India has declined Kerala’s request to draw a parallel between the Tuticorin port and the Vizhinjam port regarding the conditions for providing the Central share of Viability Gap Funding (VGF).

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About Tuticorin Port (Outer Harbour Container Terminal)

• Tuticorin Port (Outer Harbour Container Terminal) is located in Thoothukudi, Tamil Nadu, India.
• It is a major port on the southern coast of India, strategically located on East-West international shipping routes.
• The port is undergoing significant expansion with the development of the Outer Harbour Container Terminal.
  • This expansion aims to increase the port’s capacity to handle larger vessels and more cargo.
• Authority: Developed and managed by V.O. Chidambaranar (VOC) Port Authority, an autonomous body under the Government of India.
• Funding Model: No repayment condition for VGF since the project is a Central initiative.
  • Revenue and expenditure are directly managed by the VOC Port Authority.
• Operational Model: Not subject to any revenue-sharing agreements.

Vizhinjam Port (International Seaport)

• Location: Vizhinjam, Thiruvananthapuram district, Kerala, India
• Authority: Adani Vizhinjam Private Port Limited (AVPPL) under a public-private partnership (PPP) model
• Funding: State government support through a Viability Gap Funding (VGF) scheme
• Significance: Aims to be a major international seaport, enhancing India’s maritime trade, boosting Kerala’s economy, and creating employment opportunities.