India is poised to witness the commissioning of a landmark infrastructure project as Prime Minister Narendra Modi will inaugurate the Vizhinjam International Seaport in Kerala on May 2, 2025. This will mark the formal unveiling of the country’s first deep-sea transshipment terminal, which is expected to revolutionise maritime logistics and trade connectivity in the region.
Vizhinjam Port Gains Edge with Strategic Location
The Vizhinjam port holds a strategic advantage due to its proximity just 10 nautical miles to the major East-West international shipping corridor. This vital route facilitates cargo movement between Europe, Southeast Asia, the Persian Gulf, and the Far East, making the port an ideal gateway for global trade. Unlike many other ports in the region, Vizhinjam’s naturally deep waters and steep continental shelf allow it to host large container vessels without the need for continuous dredging, making operations more cost-efficient.
Although commercial activity at the port had already begun in December 2024 after successful trial runs, the official inauguration had been deferred to accommodate the Prime Minister’s schedule. Since the soft launch, the port has handled more than 250 vessels and processed over 5 lakh TEUs (Twenty-foot Equivalent Units), signaling its potential as a major logistics hub.
Rs 7,500 Crore Port Built Via PPP, Major Investments Ahead
The Rs 7,500 crore port project is being implemented under a public-private partnership model, with the Kerala government partnering with the Adani Group. The concessionaire, Adani Vizhinjam Port Private Limited (AVPPL), began construction back in December 2015. So far, the Adani Group has invested about Rs 4,500 crore, with plans to inject another Rs 9,500 crore into Phase II and III developments, which are projected to be completed by 2028.
Security agencies are leaving no stone unturned in preparation for the Prime Minister’s visit. The Kerala Police, in coordination with the Special Protection Group (SPG), is setting up a comprehensive security framework. The Prime Minister’s Office has already issued a formal communication confirming his participation in the event, which will also be attended by key dignitaries including Kerala Governor Rajendra Arlekar, Chief Minister Pinarayi Vijayan, Union Minister Sarbananda Sonowal, and industrialist Gautam Adani.
Centre, State Resolve VGF Row with Rs 817.80 Cr Support Deal
One of the major milestones ahead of the inauguration was the resolution of a long-pending dispute over the Viability Gap Fund (VGF). A tripartite agreement was signed on April 9 among the central government, AVPPL, and the consortium of lending banks. As per the agreement, the Centre will contribute Rs 817.80 crore towards the project’s viability, while the state government has agreed to share 20% of the port’s revenue with the Union government.
Notably, Vizhinjam is the first Greenfield port project in India to be initiated by a state government. With a projected investment of over Rs 18,000 crore across all phases, this port is expected to play a transformative role in boosting India’s shipping capacity and placing Kerala on the global maritime map.
