Kerala CM Vijayan writes to PM Modi to withdraw VGF repayment for Vizhinjam seaport

Chief Minister Pinarayi Vijayan has written to Prime Minister Narendra Modi requesting that the Centre withdraw at the earliest its decision requiring the repayment of ₹817.80 crore provided as the viability gap fund (VGF)for the Vizhinjam international seaport project in net present value (NPV) terms, considering the major investment being made by the State to the tune of ₹5,554 crore in the project and the returns that would accrue to the nation as a whole.

In his letter to Mr. Modi, Mr. Vijayan said that the efforts taken by the State government in investing a substantial amount in a project of national importance, despite its limited financial resources, should be given due consideration.

Phase I of the project has been developed in a public-private partnership (PPP) format at an estimated cost of ₹8,867 crore. The project was structured as to avail the VGF under theScheme for Financial Support to Public Private Partnerships in Infrastructure by the Economic Affairs department, Union Ministry of Finance.