PM Modi to commission Kerala’s Vizhinjam Port, India's first deep-sea transshipment hub, on May 2

The port, which began commercial operations in December 2023 after a series of successful trial runs between July and December, has already handled over 5 lakh TEUs (Twenty-foot Equivalent Units) and welcomed more than 250 vessels.

Delay cleared by resolution of funding and technical issues

The formal commissioning had been postponed due to technical complications, but recent progress has cleared key hurdles.

A major breakthrough came on April 9, when the Centre and the Kerala government reached a consensus over sharing the Viability Gap Fund (VGF) for the project.

Under the agreement, the Centre will contribute ₹817.80 crore as its share of the VGF to Adani Vizhinjam Port Private Limited (AVPPL), the port’s concessionaire. A tripartite agreement has been signed by the Centre, AVPPL, and the consortium of banks funding the project.

The Kerala government has agreed to share 20% of the port’s revenue with the Centre.

Environmental nod for next phases

Earlier, in March, the Ministry of Environment, Forest and Climate Change (MoEFCC) granted clearance for the port’s second and third phases, paving the way for continued infrastructure expansion.

Economic impact already visible

Despite being in early stages, Vizhinjam has shown strong economic potential. It has contributed ₹32 crore in taxes to the Kerala government and earned ₹181 crore in revenue for AVPPL.

Thanks to its strategic location on key global shipping lanes, the port is positioned to become a critical hub for international cargo transshipment, potentially easing India’s dependency on foreign ports for container handling.