Vizhinjam Port: HUDCO Approves 2000 Crore Loan

Housing and Urban Development Corporation (HUDCO) announced that a loan of Rs. 2000 crore has been approved for Vizhinjam port project. VISL Managing Director Adeela Abdulla said confirmation had been received from HUDCO’s board of directors. The
Payment will be made within one month of the completion of the procedures.

The interest rate set by the Reserve Bank applies to the loan. The amount is earmarked for ancillary facilities, including rail and road links to the port. HUDCO has been asked for a loan of 3400 crore rupees. The loan was guaranteed by the government against objections from the Accountant General. Only the interest on the amount has to be paid for 15 years.

The state government spends 4,428 crore rupees on the port project which costs 7,700 crore rupees. Previously, VISL had taken out a loan of 409 crore rupees from Kerala Finance Corporation.

railway construction soon

With the availability of the loan, the construction of the Balaramapuram – Vizhinjam subway will start soon. Southern Railway had already given approval for the project. The 10.7km stretch is expected to be completed within three years of the port opening. The construction work should be completed by 2027.

The cost of construction is 1,060 crore rupees and the construction is being carried out by Konkan Rail Corporation. The broad gauge track is intended for freight traffic only. 4.74 km lead through a tunnel. Land acquisition is in progress.

Tripartite Agreement

The Port Ministry has started disbursing Rs.1,635 crore as a Gap Viability Fund to the Adani Group, albeit with a delay. The central government pays 817 crores and the state 818 crores. A tripartite agreement involving Adani Ports should be made to get the central share. The preparatory steps are initiated by the port authority.

International Conference

The Ministry of Ports is preparing to hold an international conference in Thiruvananthapuram to mark the inauguration, with the participation of shipping and logistics companies. The government is also considering holding a major investment meeting in Vizhinjam in the future to transform the outer ring road into an industrial corridor.

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