Kerala sets rates on par with Colombo for Vizhinjam port project.

The Kerala government has set rates on par with Colombo port as it enters the final lap of an auction to select a private firm for running a container trans-shipment terminal at Vizhinjam port near Thiruvananthapuram.

The southern state is the first to follow the so-called model concession agreement being finalized by the Union government for state-owned ports such as the one planned at Vizhinjam when the project avails a viability gap funding (VGF) from the central government.

Kerala has sought VGF for the Vizhinjam project, billed the biggest infrastructure project yet in the state, to boost its viability.

'The Union government has started the process of appraising the project for VGF and a decision is expected in the next few days,' a spokesman for the Kerala government said. A model concession agreement sets out the terms and conditions of a port contract, including the rights and obligations of both the parties.


Livemint