The Kerala Government has provided Rs 100 crore as its share of the construction cost for the breakwater as part of the Vizhinjam Port Project. This amount constitutes the first instalment of the construction cost. The State was required to hand over 25% of the cost, equivalent to Rs 347 crore, before March 31. However, due to the financial crisis faced by the State, its share of Rs 100 crore was paid after obtaining a loan from the Kerala Financial Corporation (KFC). According to Dr Adeela Abdullah, Managing Director of the Vizhinjam International Seaport Limited (VISL), the remainder of the amount may be paid this month.
To pay for the State’s share, a loan was obtained from the KFC as efforts to obtain a loan from the Housing and Urban Development Corporation (HUDCO) were delayed. The State had also planned to acquire a loan of Rs 550 crore from a consortium of cooperative banks to pay for railway projects and land acquisition expenses, among other things.
The government is anticipating a loan of Rs 3,400 crore from HUDCO, with Rs 1,170 crore designated for the Vizhinjam-Balaramapuram railway project. The Centre is expected to pay Rs 818 crore as viability gap funding, while the State will pay Rs 400 crore to the Adani Group.
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