Thiruvananthapuram: In a Cabinet meeting, chaired by Chief Minister Pinarayi Vijayan on Wednesday, the draft report for the Malabar International Port & SEZ Limited project was approved.

The financial structure report, prepared and submitted by the Center for Management Development (CMD), has been accepted. The project will proceed with a provision in the Expression of Interest (EOI) requiring the concessionaire to share a portion of the income with the government from the project's inception. This measure aims to prevent additional financial burdens on the government for the project's later stages. The Cabinet also granted in-principle approval for the Viability Gap Funding (VGF) from the Central Government.

The Kannur Azhikal International Greenfield Port and the associated development of Industrial Parks/Special Economic Zones represent the major initiative under the State Government’s Ports Department.

To facilitate this, a special company, Malabar International Port & SEZ Limited, has been established, with the Chief Minister serving as its chairman. The project envisions the development of a port with a depth of 14.1 meters and a capacity to handle Panamax-sized container ships, with a draft of 8000-75,000 DWT ( Deadweight tonnage) or 5000 TEU (twenty-foot equivalent unit). It also includes the industrial and commercial development of Malabar through the creation of Industrial Parks/Special Economic Zones.

Detailed geotechnical investigations of the project area have been completed, and the final report was submitted in January 2022. The technical consultant's design report indicated the need to modify the embankment design. Following this, IIT Madras inspected and recommended replacing the breakwater foundation. Environmental studies and other necessary procedures are ongoing.

The project aims to boost export-import trade and port-based economic development. Tata Consulting Engineers Limited (TCE), the project's consultant, submitted the Special Economic Zones Inception Report in March 2021 and the Hinterland Business Potential Report in March 2022.

Preparations are underway for land acquisition and transfer in the districts of Kannur, Kasaragod, Wayanad, and Kozhikode to support the development of industrial parks and related infrastructure.