VGF gets Central approval.

Viability Gap Funding (VGF) for the Rs. 4,089-crore Vizhinjam International Multipurpose Seaport project has received the nod of Union Finance Minister Arun Jaitley.

With this, the decks have been cleared for getting maximum 20 per cent VGF of the total estimated cost of Rs. 4,089 crore for the project from the Union government. The project will be the first in Kerala to be executed with the VGF of the Union government. An official communication regarding the nod from Mr. Jaitley reached the State government recently, Chief Executive Officer, Vizhinjam International Seaport Ltd. (VISL), Suresh Babu told The Hindu . The project has received all mandatory clearances.

The Vizhinjam project had earlier received the recommendation for the VGF from the high-power Empowered Institution, Empowered Committee under the Union Finance Ministry.

But some of the provisions were not in favour of the project and the interests of the State.Following this, Mr. Babu said the Empowered Committee for VGF under the Union Finance Ministry looked into the request of the State and gave the approval with the modifications requested by the State. Chief Minister Oommen Chandy had taken up the issue with Mr. Jaitley during his recent visit to Delhi.

The approval from the Union Finance Minister has come when there is 12 days left for submitting the final bid to build the port superstructure and operate the seaport project by partnering with the State.

The three weeks extended deadline for submitting the final bid will come to a close on February 20.

Five major port-operating companies have responded to the global tender floated by the VISL.

The entities that had submitted Request for Qualification for building port superstructure and operating the port are: Gammon Infrastructure Projects, Hyundai-Concast Infratech Ltd., Essar Ports, Adani Ports, and a consortium of Srei Infrastructure and OHL.

The CEO said three of the companies have already purchased the draft concession agreement prepared on the basis of the VGF. The bids will be opened on February 20 here after the deadline for submission ends.


THE HINDU