Thiruvananthapuram: Chief Minister Oommen Chandy has written to Prime Minister Narendra Modi seeking Central funds and relaxation in Cabotage Law for the Vizhinjam seaport project.
The letter was sent to the Prime Minister as the Viability Gap Fund (VGF) application of the Vizhinjam Port is to come up on Thursday before the Empowered Institution for the Grant of VGF. The meeting on Thursday will consider the issue of funding for the project under the Scheme for Financial Support to PPPs in Infrastructure.
Chandy has asked for a relaxation from Cabotage Law for at least the first 10 years after commercial operations of the port begin. The Cabotage Law allows only Indian flagged vessels to transport cargo between Indian ports. Chandy in the letter said that if the VGF were to be granted swiftly, it would benefit the project worth Rs 6,647 cr.
The State Government had earlier also approached the Centre for VGF and Cabotage exemption for the Vizhinjam project. However, the significance of the present letter is that this is the first time that such a request has been placed before the Modi Government.
The letter also emphasised the fact that the Ministry of Environment and Forests had already given the environmental and CRZ clearance. Apart from that the State Government had also acquired more than 90 per cent of land required for the project, the letter said.
