The minister also highlighted significant cost reductions for the state under the new terms. The state’s share of Viability Gap Funding (VGF) has been reduced by Rs 408.9 crore, from Rs 774 crore to Rs 365.1 crore.

Of this, the first instalment of Rs 189.9 crore will be provided immediately, while the remaining Rs 175.2 crore will be paid upon the project’s completion in 2028.

Additionally, the state has been exempted from paying Rs 30 crore in compensation to the concessionaire for delays in land acquisition. “This exemption further underscores the state’s advantages under the new agreement,” Vasavan noted.

The board of Vizhinjam International Seaport Limited will convene shortly to finalise the port’s commissioning date. The minister added that the port is expected to become operational in December this year or January 2025.