Cabinet clears Malabar port and SEZ draft proposal
NEW DELHI / KANNUR : On Wednesday, the Cabinet approved the draft proposal for the Malabar International Port and Special Economic Zone Limited (MIPSL) project at Azhikkal in Kannur district.
The Centre for Management and Development has prepared an economic plan to make the scheme viable without financially overburdening the government. The government will receive a share of the operating profits. To execute the project quickly, it will approach the Central government for viability gap funding.
The 14.1-metre-deep port can easily handle Panamax category container ships. The government has completed the site’s geotechnical investigation, including soil testing, and envisaged the port and special economic zone as a greenfield project. IIT Madras is also one of the project consultants.
The main project under the State government’s ports department is the development of the Kannur Azhikkal International Greenfield Port and its associated industrial park and special economic zones. To facilitate this, MIPSL was formed as a special company, with the Chief Minister serving as its chairman.
The port development aims to accommodate Panamax-sized container ships with a capacity of 5,000 TEU or 8,000-75,000 DWT.
In a statement, the Chief Minister’s Office said the Expression of Interest (EOI) will include a provision for the concessionaire to share a portion of the income with the government from the project’s inception. This is to ensure that the government does not incur additional financial burdens for the development of the project’s subsequent stages, the statement added.
It also announced that in-principle approval was given for the availability of “viability gap funding” (VGF) from the Centre.
A detailed soil investigation (geotechnical investigation) of the project area has been completed and the final report was received in January 2022.
The project aims to increase export-import trade and promote economic development based on the port.
The consultant, Tata Consulting Engineers Limited (TCE), submitted the Inception Report for Special Economic Zones in March 2021 and the Hinterland Business Potential Report in March 2022.
“Initial steps are being taken to acquire and transfer land in Kannur, Kasaragod, Wayanad and Kozhikode districts for industrial park development and other purposes. The master plan is also being prepared,” the statement said