Kerala seeks central funding for massive port project
16 Jun 2014
The Kerala government has sought central viability gap funding for its multi-thousand crore Vizhinjam international sea port and container transhipment terminal project.
Chief minister Oommen Chandy has written to Prime Minister Narendra Modi seeking personal intervention in the matter.
Chandy also reiterated the state's demand for exemption from Cabotage rules for the mega port.
Viability gap funding is a one-time or deferred grant provided to support infrastructure projects that are economically justified but fall short of financial viability.
The Rs6,647-crore Vizhinjam project is proposed to be set up through the design, build, finance, operate and transfer mode. It has been structured in line with the guidelines for viability gap funding for financial support, the Chief Minister recalled.
Under the scheme, the Centre provides funds to infrastructure projects that are to be undertaken through public-private partnerships. The amount would be equivalent to the lowest bid for capital subsidy, but subject to a maximum of 20 per cent of the total project cost.
The empowered institution under the union finance ministry that decided on the grant of funds under the scheme is scheduled to consider the application for Vizhinjam on Thursday.