In an attempt to augment the capacity of the cargo handling and ensuring smooth running of the port business in the state, the state government in Kerala has cleared an investment worth Rs 3,844cr for building port project, said sources, adding that in addition to Rs 1,871.9cr, the amount which will be provided by the state government, it will also spend Rs 1,973cr on preparing external infrastructure for the Port like rail and road connectivity and power and water supply to the Vizhinjam seaport and that out of the total funds Rs 1,463cr will be spent on the construction of the breakwater and that the remaining Rs 408.9cr will be a part of the state's share of the viability gap fund.
As a matter of fact, the total cost of the project, taking into account all expenses, is Rs 7,525cr. The construction of the Port alone will cost Rs 5,552cr and that Rs 4,089cr will be collected through PPP mode. The state government is all set to sign the formal agreement with Adani Ports in a month's time. The Gujarat-based firm has conveyed its consent after accepting the Letter of Award issued by the state government recently. In its bid, Adani Ports has sought Rs 1,635cr as grant from the government which the state Cabinet willingly approved and that the construction is all set to start in the next few months.