Thiruvananthapuram: The Kerala Government has handed over Rs 100 crore as its share for the construction of the breakwater which is part of the Vizhinjam Port Project. This amount is the first instalment of the construction cost.
It was stipulated that the State must hand over 25% of the construction cost of the breakwater, amounting to Rs 347 crore, before March 31. Owing to the financial crisis being faced by the State, its share of Rs 100 crore was paid after obtaining a loan from the Kerala Financial Corporation (KFC).
Dr Adeela Abdullah, Managing Director of the Vizhinjam International Seaport Limited (VISL), said the rest of the amount could be paid this month.
The loan for paying the State's share was taken from the KFC after its efforts to obtain a loan from the Housing and Urban Development Corporation (HUDCO) got delayed. The State is scheduled to pay Rs 100 crore each for Railway projects and acquisition of land. To meet expenses including this, the State had attempted to obtain a loan of Rs 550 crore from a consortium of cooperative banks.
The government expects a loan of Rs 3,400 crore from HUDCO. Of this, Rs 1,170 crore is for the Vizhinjam-Balaramapuram railway project. The Centre has to pay Rs 818 crore as viability gap funding and the State Rs 400 crore to the Adani Group.
(Breakwater is constructed close to the coast to secure fishing vessels from tides, currents, waves, and storm surges.)