Vizhinjam International Seaport: Read All About This port.

Akanksha Yadav

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Prime Minister Narendra Modi said at the inauguration ceremony of Vizhinjam International Seaport in Kerala that it is important for India’s maritime sector. People were waiting for this port for many years. It will boost trade and commerce and will be especially beneficial for Kerala’s economy.

Know about Vizhinjam International Seaport

Construction work of Adani Vizhinjam Port Private Limited began on 5 December 2015.
Vizhinjam International Seaport is claimed by the Adani Group to be India’s first port developed for deep-water container transshipment.
Vizhinjam International Seaport is a part of Adani Ports. It is being claimed that the work of its first phase has been completed.
The Government of Kerala has a majority stake in Vizhinjam International Seaport.
When the official inauguration of Vizhinjam International Seaport, included in Nifty, was being done by Prime Minister Narendra Modi, trading was going on in the Indian stock market. During this time, Adani Ports shares saw a rise of 6 percent.
This is the dream project of Indian industrialist Gautam Adani. However, there is no less controversy regarding this.

Vizhinjam International Seaport is also surrounded by controversies.

The construction of the first phase of Vizhinjam Seaport is surrounded by controversies. Let’s know what is the reason behind the controversy:

Key Points of Vizhinjam Port Project Funding Controversy

  • Four-phase project; Phase 1 done, next three phases to run together, costing Rs 9,000 crore, fully funded by Adani Group.
  • Phase 1 cost Rs 8,867 crore: Kerala paid Rs 5,595 crore, Adani Rs 2,454 crore, Centre gave Rs 818 crore (VGF) and Rs 795 crore (interest-free loan, repayable over 50 years).
  • Kerala earned Rs 397 crore GST since July 2024 (Rs 348 crore from port infra imports, Rs 49 crore from cargo).
  • Kerala gets GST from cargo till 2034, then 1% cargo revenue share, rising to 40% by 2060; expects Rs 12.33 crore by 2034, Rs 40.97 crore by 2036.
  • Adani keeps 100% container movement revenue till 2034.
  • Centre gets GST from port activities; from 2034, recovers VGF (est. Rs 12,000 crore with NPV). Kerala shares 20% port income with Centre till VGF repaid.
  • Controversy: Critics question Adani’s large revenue share and control, Kerala’s limited early gains, and long-term repayment burden to Centre.

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