The Housing and Urban Development Corporation (HUDCO) has sanctioned a loan of Rs 2000 crores for the construction of Vizhinjam International Port. It should be noted that the Vizhinjam International Sea Port Limited (VISL) had requested Rs 3,600 crores from the corporation for the construction activities.
The first instalment of funds are expected to be handed over to the port authorities within a month.
Meanwhile, the Adani group is pressurizing the state government to release its contribution towards the construction of the port. In a whole, the Kerala government is supposed to hand over Rs 1,450 crores to the Adani group for the breakwater project. However they have only managed to contribute Rs 350 crores so far.
The interest for HUDCO’s loan has not been fixed. The port’s operations will be handed over to the government only after 15 years of its construction. Hence, the repayment of the loan borrowed from HUDCO needs to be done only after 15 years. Only the interest needs to be paid to the corporation until then. The Kerala government is providing the guarantee for the loan sanctioned to VISL.
The construction of the port is entering its final phase, first ships are expected to reach the port by September. The construction of breakwater, which was considered a major challenge, is nearing completion.
