Kerala: Adani's Vizhinjam Port To Become Operational By March 2023

The status of the development of the Vizhinjam port was reviewed during a meeting between Kerala's Ports Minister Ahammad Devarkovil and Adani Ports and SEZ CEO Karan Adani on Saturday (23 July).

Following the meeting, the Minister stated that it was agreed to commission the first phase of the project by September 2023 on the occasion of Onam.

The Vizhinjam International Transhipment Deepwater Multipurpose Seaport is a large-scale project and is primarily intended for container transhipment, as well as multi-purpose and break bulk cargo.

The first phase of the seaport project consists of building a 3.1-kilometer breakwater, an 800-meter container berth to accommodate two 12,500 TEU (twenty-foot equivalent unit) container vessels, and a fishing harbour.

The port is currently being built under a landlord model with a Public Private Partnership component on a design, build, finance, operate, and transfer (DBFOT) basis.

Vizhinjam port will coexist and compete with international ports, such as those in Colombo, Singapore, and Dubai.

With the commissioning of the project, a lot of employment opportunities would be created for the common folks and skilled people living in the area. The government had addressed most of the demands raised by the residents of the project site regarding rehabilitation. The rest would be resolved soon after holding a discussion with those concerned. The Adani Group also expressed its willingness to make additional investments to maximise the potential of the port, said Devarkovil, as reported by The Hindu.

Karan Adani, who visited Kerala to assess the progress of the Vizhinjam Port construction, also met and spoke with Kerala Chief Minister Pinarayi Vijayan.

The port project was signed during the tenure of the Congress-led UDF government led by Chief Minister Oommen Chandy. The Adani Group and the Kerala government signed a Rs 7,525 crore deal, but the project hit several roadblocks and controversies.

Cyclone Okchi devastated the region in 2017, destroying a portion of the built breakwater. Since then, a further delay has been brought on by the lack of limestone, the project's most crucial raw material.

The port also encountered persistent opposition from the nearby fishing communities, who claimed that the construction and debris had a negative influence on their ability to find fish and, consequently, on their livelihoods.

The only bidder for the project, Adani Ports, had sought of Rs 1,635 crore for construction. The agreement states that Adani will run the port for 40 years, with an option for a further 20 years, and that after 15 years, the state government will receive a part of the port's earnings.