Thiruvananthapuram, Feb 7 The soon-to-be-commissioned Adani Vizhinjam Port took centre stage in the final full budget of the second Pinarayi Vijayan government, presented by State Finance Minister K.N. Balagopal on Friday in the Kerala Legislative Assembly.
The cover page of Balagopal’s fifth successive budget features an image of a cargo-laden ship arriving at the port, underlining the state government’s emphasis on the mega port project.
Balagopal highlighted that most physical infrastructure projects announced in previous budgets have either been completed or made substantial progress.
“It has been decided to accelerate the construction of the second, third, and fourth phases of the Vizhinjam Port, now slated for completion by December 2028 -- far ahead of the originally agreed timeline. This is unprecedented in Kerala, where large projects are often plagued by time and cost overruns. Initially, these phases were envisioned for completion only by 2045,” Balagopal said.
The Minister further noted that Adani Vizhinjam Port Private Limited (AVPPL), the port’s concessionaire, will invest approximately Rs 9,500 crore to complete the construction by 2028. He also pointed out that, so far, all expenses related to the port -- which were initially meant to be shared by the Union and State governments -- have been borne solely by the State.
“Currently, the State has had to take on the financial burden initially promised by the Union Government as Viability Gap Funding. Additionally, it has been proposed to establish a shipyard in southern Kerala, given the country’s lag in maritime logistics and shipbuilding. The State Government will continue engaging with the Union Government in this regard, with the expectation that the Centre will take the lead in setting up the shipyard. The State remains committed to fulfilling its responsibilities in this effort,” Balagopal stated.
He also emphasized that, with the completion of the Vizhinjam Port and the expected rise in container traffic, the State Government has decided to accelerate the upgrading of State highways to align with the pace of national highway development.
“Ministerial participation at the World Economic Forum in Davos has significantly boosted investor interest in Kerala. The state’s ambitious vision for maritime and logistics infrastructure, presented at the recently held Vizhinjam Investment Conclave, received an enthusiastic response from global industry leaders,” Balagopal added.
“Our ultimate goal is to position Vizhinjam not merely as a transshipment hub but as a major export-import (EXIM) port, drawing inspiration from leading global ports such as Singapore, Rotterdam, and Dubai. In line with this vision, I am pleased to announce the Vizhinjam-Kollam-Punalur Growth Triangle (VKP-GT), which will drive regional economic development,” he added.
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