The Vizhinjam International Deepwater Multipurpose Seaport, also known as the Vizhinjam International Seaport and the Port of Vizhinjam, is a port that is under construction on the Arabian Sea coast at Vizhinjam in Thiruvananthapuram, Kerala, India. The total project expenditure is pegged at 6595 crores for first phase and will be developed in three phases and is proposed to follow the landlord port model with the intention of catering for passenger, container and other cargo shipping. Vizhinjam International Seaport Limited is a special purpose government company that would act as an implementing agency for the development of a greenfield port - Vizhinjam International Deepwater Multi purpose Seaport- at Vizhinjam in Thiruvananthapuram, capital city ofKerala.
History
The Vizhinjam Port was originally conceived about 25 years ago. The initial project model was suggested as a Public Private Partnership - Private Services model. Two rounds of bidding and tenders called under the PPP model failed because of the inherent nonviability of the project's economic rationale. The first round was granted to a Chinese company that failed to get security clearance from the Centre; the second round was first awarded to Lanco Group and was then challenged in the Kerala High Court by Zoom Developers, which led to the eventual withdrawal of Lanco Group. The Kerala cabinet on 10 June 2015 decided to award the multi-thousand-crore international port and deep-water container terminal to Adani Ports and SEZ, the sole bidder. The International Finance Corporation is currently the transaction advisor to VISL. The IFC was appointed in November 2009 as the lead advisor to the port. The IFC undertook in 2009 - 2010 a series of studies and reports that recommended the State to undertake the project under the Landlord Model, under which the Statewould invest over US$1 billion to build the port, rather than the PPP model, under which the Private Partner would bear the cost of the port. L&T-RAMBOLL had undertaken the Environmental Impact Assessment Study of the container port. After the landlord model was accepted by the State Government, a bidding round concluded. A consortium led by Welspun was the sole eligible company for the port operator role. The Welspun Group requested a grant of about 480 Crores as a grant in terms of Net Present Value over 16 years. In negotiations between the State Government and the Welspun Group, Welspun agreed to reduce the grant to 400 Crores. Kerala State Government rejected this offer because the terms of the PPP saw no economic rationale for the State Government. An Expert Apprisal Committee of the Ministry of Environment recommended clearance for the project on 3 December 2013. Tenders for construction of a breakwater, fish landing centre and port operator began the next day.
