Vizhinjam port construction | Photo: AP
Thiruvananthapuram: The Kerala government is planning to take an immediate loan of Rs 850 crore in order to pay the Adani Group for the construction of Vizhinjam port within a week.
As per reports, the government has decided to avail the loan from the Housing and Urban Development Corporation (HUDCO) or the consortium of cooperative banks. Talks regarding the same are underway.
A total of Rs 1000 crore is required for the completion of the Vizhinjam project and another Rs 1000 crore for the construction of Vizhinjam-Balaramapuram railway lane. As a result, the government is planning to take an overall loan of Rs 2850 crore.
Reportedly, the decision to approach HUDCO and cooperative banks were taken due to the technical difficulties in sanctioning loans from other banks.
The government has to pay Rs 1450 crore for the construction of the breakwater. Currently, around 30 per cent works of the breakwater has been completed.
Meanwhile, the Adani Group has repeatedly written to the government seeking Rs 400 crore immediately. The state government is supposed to pay its share of Rs 400 crore out of the total Rs 817 crore as gap viability fund.
The state department of ports has also assured Adani Group that the government will intervene to provide the Centre’s share in the viability fund. The aim is to finish the first phase of the port construction by next September.
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