The Kerala government on Friday said it would approve signing the tripartite agreement to get the Viability Gap Fund released to the Adani firm constructing the Vizhinjam international transhipment hub and seaport, on the condition that the second and third phase is completed by 2028.
The tripartite agreement would make available the viability gap fund of Rs 817.80 crore allocated by the central government to Adani Vizhinjam Private Port Limited (AVPPL),which is constructing the port.
The chief minister’s office said that as per the new condition put forth, the second and third phases, which were to be completed by 2045 with an investment of Rs 10,000 crore, should be finished by 2028.
The state government expects that finishing the project 17 years before the scheduled deadline will bring in huge investment within a short period. The CMO said that as per the terms of the agreement, AVPPL, was supposed to complete the construction on December 3, 2019.
Even though AVPPL had cited unforeseeable and unavoidable events such as Cyclone Ockhi and floods in the state as reasons for not completing the project within the stipulated time, the Vizhinjam International Seaport Limited (VISL) had rejected the request for extension of time for completing the project, the CMO said.
“The cabinet meeting decided to conditionally waive the delay in the completion of the project based on the terms of the agreement, and conditionally extend it by five years,” the CMO release said. Once the AVPPL accepts the conditions, further process will be initiated for signing the tripartite agreement, the release added.