Vizhinjam Port set to commence operations by Dec; Adani requests immediate payment of Rs 1200 cr

THIRUVANANTHAPURAM : The Kerala government has informed that the construction works of Vizhinjam Port will be completed by May this year. As per the announcement, the port will become operational from December 2024. However, the government is delaying the payments to the Adani Group which is putting the proceedings in crisis. The business conglomerate is demanding an immediate payment of Rs 1,200 crores as part of the construction expenses so far. The group has sent a letter to the Kerala government stating the demand.

It should be noted that the Adani Group has so far spent Rs 4,000 crores for construction of the port. But to proceed further with the works, the group now demands money from the Kerala government. The company had shelled out Rs 1,600 crores only for the ‘crane operations’. If the government fails to release the funds on time, then the commissioning of the port is bound to be delayed.

It’s time for setting up more basic facilities and mechanical support at the port. The government has only handed over Rs 700 crores to the Adani group so far, that too in two phases. The authorities need to raise Rs 350 crores immediately to acquire more lands for the port activities. Hence, the construction of the port at the moment is facing several challenges.

The Kerala government’s decision to borrow Rs 3,600 crores from HUDCO has hit a roadblock owing to differences between the groups.