Thiruvananthapuram: The Kerala government and Adani Vizhinjam Port Private Limited have agreed to a supplementary concession agreement for the Vizhinjam International Port Project.
The state cabinet meeting, chaired by Chief Minister Pinarayi Vijayan, approved the draft supplementary concession agreement. This approval comes after the withdrawal of arbitration proceedings.
After consultations with the legal department and the Advocate General, the cabinet gave its approval for the deal, according to a CMO release here on Wednesday.
Under the new agreement, the second and final phase of the Vizhinjam Port, originally set for completion in 2045, will now be finished by 2028.
Unlike the previous arrangement, this agreement will ensure the completion of all phases of the port.
As a result, Adani Ports will bring in new investments worth Rs 10,000 crore within the next four years.
Once completed, the port’s minimum capacity will reach 3 million TEUs (Twenty-foot Equivalent Units).
The project timeline has been extended by five years, taking into account such COVID-19 pandemic and natural disasters such as the Ockhi cyclone, and floods.
Due to delays, a penalty of Rs 219 crore has been imposed, with Rs 43.8 crore to be paid to the state. The remaining amount will be withheld until 2028.
If the project is not fully completed by 2028, the five-year extension will be cancelled, and the withheld amount will be collected by the government.
