Kerala government’s decision to enter a tripartite agreement with Adani Vizhinjam Private Port Limited (AVPPL), which is constructing the Vizhinjam International Seaport, offered a glimpse into the extraordinary influence exerted by the corporate company on the State government at the highest level.
The State government issued a statement ahead of withdrawing from the arbitration proceedings initiated against the AVPPL, in which the government emphasised that a new tripartite agreement needs to be inked to make available the viability gap fund (VGF) of ₹817.80 crore allocated by the Central government to the AVPPL.
The State argues that the port work would be delayed or the developer would lose VGF if the arbitration was delayed. Among the conditions put forth by the State to extend the deadline to December 2024 now, the main condition was to finish the second and third phases of the port development, which were to be completed by 2045 with an investment of ₹10,000 crore, by 2028.
