Officials from the Ministry of Environment, Forest, and Climate Change have launched an examination to assess the environmental ramifications of both phases II and III of the Vizhinjam International Seaport.
Expected to be concluded by the end of March, this assessment will serve as a prerequisite for granting environmental clearance to Adani Vizhinjam Private Port Limited (AVPPL) for advancing with the construction of the port’s subsequent phases.
An AVPPL official stated, “The ministry has provided the terms of reference (TOR), and the study is currently underway based on these conditions. We anticipate clearance by August, enabling us to commence work on the second and third phases by October.”
Despite the original project timeline set for completion by 2045, the state government has urged AVPPL to expedite construction, aiming for a 2028 completion date. Furthermore, additional stipulations have been outlined for a tripartite agreement to unlock INR 818 crore in viability gap funding from the central government to AVPPL.
Among these conditions is withholding Rs 219 crore from AVPPL’s equity support deposit. However, Rs 175.2 crore will be reimbursed if the project meets the 2028 deadline.
“We are in full agreement with the state’s conditions for signing the tripartite agreement. Advancing the deadline by 17 years is a commendable decision by the state government. Why delay until 2045 when we can feasibly complete the project by 2028?” remarked the AVPPL official.
The investment required for the second and third phases by AVPPL is estimated at Rs 10,000 crore.
“The original deadline of 2045 was established in 2014 during the project’s infancy. With the first phase completed ahead of schedule, achieving the 2028 target for subsequent phases is within reach,” explained the official.
Regarding the construction of an additional 1000m breakwater for the second and third phases, the official expressed confidence, citing the swift completion of a 3,000km breakwater in the first phase. “We averaged 750m annually in the first phase, so four years is more than adequate to construct 1,000m if we maintain a similar pace,” the official added.