State Government advances deadline for Vizhinjam Seaport project, to be constructed by 2028

Vizhinjam port

Officials from the Ministry of Environment, Forest, and Climate Change have initiated a study to evaluate the environmental impact of both phase II and phase III of the Vizhinjam International Seaport. 

The completion of this study, expected by the end of March, will be a prerequisite for granting environmental clearance to Adani Vizhinjam Private Port Limited (AVPPL) to proceed with the construction of the second and third phases of the port.

“The ministry has already issued the terms of reference (TOR) and the study is only on the conditions of the TOR. We will get the clearance by August and in Oct we will be able to start the work on the second and third phases of the port project,” said an official of AVPPL.

Also Read: Vizhinjam International Seaport: The Adani Saga of Delays, Deals, and Dilemmas

Although, the deadline for finishing the second and third phases of the project was set at 2045, the state government has now asked AVPPL to complete the construction by 2028. 

It has also established additional conditions for signing a tripartite agreement to secure the release of the INR 818 crore viability gap funding from the center to AVPPL.

One of the conditions was to withhold Rs 219 crore from the equity support deposited by AVPPL. However, Rs 175.2 crore will be refunded to AVPPL if the project is completed in 2028.

“We have fully agreed with the conditions set by the state to sign the tripartite agreement. The state government’s decision to advance the deadline by 17 years is a great move. Why should we wait till 2045 when we are capable of completing the project by 2028? ” the official said.

It has been estimated that the second and third phases would require an investment of Rs 10,000 crore by AVPPL.

“Initially, the deadline of 2045 was fixed in 2014 when the project was in the initial stages. We were able to complete the first phase of the project faster than expected and it is possible to complete the second and third phases by 2028,” the official said.

For the second and third phases, we have to construct an additional 1000m breakwater which is not a herculean task when we look at the speed at which 3,000km breakwater was constructed in the first phase. On average, we were able to complete 750m every year and four years is more than enough to complete 1,000m if we construct 500m per year, he added.

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