Vizhinjam Port: HUDCO sanctions 2000 crore loan

Housing and Urban Development Corporation (HUDCO) announced that a loan of Rs 2000 crore has been sanctioned for the Vizhinjam port project. VISL MD Adeela Abdulla said that confirmation in this regard has been received from the HUDCO board of directors.

The payment will be received within a month after completing the procedures.

The loan will be at the rate of interest fixed by the Reserve Bank. The amount is for ancillary facilities including rail and road connectivity to the port. HUDCO was approached for a loan of Rs 3400 crore. The loan was guaranteed by the government over the objection of the Accountant General. Only the interest on the amount needs to be paid for 15 years.

The state government is spending Rs 4,428 crore for the port project which costs Rs 7,700 crore. Earlier, VISL had taken a loan of Rs 409 crore from Kerala Finance Corporation.

With the availability of the loan, the construction of the Balaramapuram – Vizhinjam underground railway will start soon. Southern Railway had already given permission for the project. The 10.7-km stretch should be completed within three years of commissioning the port. Construction is expected to be completed by 2027.

The Ports Department has started the process of disbursing Rs 1,635 crore as Gap Viability Fund to the Adani Group, albeit with delay. The central government to pay 817 crores and the state 818 crores. A tripartite agreement should be made involving Adani Ports to get the central share. Its preliminary steps are taken by the port department.

The Ports Department is preparing to hold an international conference in Thiruvananthapuram with the participation of shipping companies and logistics companies on the occasion of the inauguration. The government is also considering holding a huge investment meeting at Vizhinjam in the future as part of converting the outer ring road into an industrial corridor.