Out-of-harbour Development Top Priority for Vizhinjam; TN Ready to Benefit from Delays: Kerala CM

Kerala Chief Minister V D Satheesan on Wednesday said out-of-the-harbour development would be his government's top priority for the Vizhinjam port, alleging that slow progress under the previous LDF government in developing allied infrastructure and industries could allow neighbouring Tamil Nadu to emerge as its biggest beneficiary.

Replying to a question in the Assembly, Satheesan said the real economic gains from the port would come from activities outside the harbour, which would generate revenue for the state, increase GST collections and create jobs.

He said road and rail connectivity were crucial for achieving this objective, but alleged that no significant progress was made on either during the previous LDF government's tenure.

The chief minister also accused the previous government of moving at a slow pace in acquiring land for port-based industries.

"If we fail to acquire land for allied industries, neighbouring Tamil Nadu is making rapid preparations to become the biggest beneficiary of Vizhinjam port," he cautioned.

"Over the last five years, Tamil Nadu has made great efforts to emerge as the beneficiary of the Vizhinjam port. Unfortunately, land acquisition for port-related industries and other enabling infrastructure progressed very slowly on the part of the Kerala government," he said.

Recalling the government's policy announced in the state budget, Satheesan said Kerala could become a major logistics and industrial hub only through comprehensive out-of-the-harbour development.

"Otherwise, Vizhinjam will remain merely a gateway port," he said.

He said the government has undertaken a detailed study of the project after assuming office a month ago and has directed institutions under the Industries Department to take urgent steps to establish container stations.

The department has also agreed to provide land for the purpose, he added.

Satheesan said the state had spent Rs 3,085.52 crore on the Vizhinjam port project during the 2016-26 period.

Of the Rs 1,635 crore grant payable to Adani Ports for construction of the port under the concession agreement, Rs 817.80 crore has been sanctioned by the Centre as Viability Gap Funding (VGF), he said.

The VGF has been received in full under the tripartite premium-sharing agreement. However, the state has not repaid the amount to the Centre as successive governments have maintained that it is a grant that should be borne by the Union government.