Kerala Chief Minister Pinarayi Vijayan has formally written to Prime Minister Narendra Modi, requesting the central government to reconsider its decision on the repayment of Viability Gap Funding (VGF) for the Vizhinjam Seaport project. The Vizhinjam port, located near Thiruvananthapuram, is one of the most ambitious infrastructure projects in Kerala, aimed at transforming the state into a major maritime hub.
In his letter, CM Vijayan highlighted the financial challenges faced by the project and argued that the repayment of VGF would place an undue burden on the state's economy. He urged the Prime Minister to review the issue in light of the project's long-term importance for Kerala's economic growth, including employment generation and trade facilitation.
The VGF scheme was introduced to support infrastructure projects with a significant public-private partnership element. However, the Kerala government has raised concerns that the repayment terms for Vizhinjam could compromise the project's financial stability. Vijayan's request underscores the state's ongoing efforts to secure favorable terms for the project, which has faced delays and other challenges since its inception.
The letter to PM Modi comes at a time when the project is under intense scrutiny, with opposition parties and critics questioning the economic feasibility and environmental impact of the Vizhinjam port. While the state government remains optimistic about the project's potential to boost Kerala's economy, the demand for a VGF repayment waiver reflects the growing concerns over its financial implications.
The response from the central government on this matter will be closely watched, as it could significantly affect the future of the Vizhinjam Seaport and similar infrastructure projects across India.
