Centre approves ₹818-cr VGF for Vizhinjam Port
The VGF was the basis on which the bid was awarded to Adani Ports and Special Economic Zone Ltd (APSEZ), which quoted the least grant of Rs 1,635 crore in an auction in 2015. The “in-principle” approval for granting VGF to the Vizhinjam port project was accorded by the Centre in February 2015. The Kerala government had filed an application with the Centre in 2018, following lenders appraisal, seeking final approval for the VGF. The company is expecting the VGF to come as a one-time grant given by the central government for supporting PPP projects in infrastructure that are economically justified but fall short of financial viability. Vizhinjam is being developed as a container transshipment port with an investment of Rs 5,552 crore to compete with Colombo because its basic infrastructure such as water depth and proximity to the main shipping lane is better than Colombo — the biggest transshipment facility in the region.