The Vizhinjam Agreement: All You Need to Know
In 2015, a groundbreaking agreement was signed between the Government of Kerala and Adani Ports and Special Economic Zone Limited (APSEZ) for the development of the Vizhinjam International Transshipment Terminal (VITT) in Thiruvananthapuram, Kerala. The Vizhinjam Agreement, as it is commonly known, has since been a topic of much discussion and debate.
What is the Vizhinjam Agreement?
The Vizhinjam Agreement is a Public-Private Partnership (PPP) agreement between the Government of Kerala and APSEZ for the development and operation of the VITT. The VITT is a deep-water transshipment port that aims to cater to the needs of the growing international trade in the Indian Subcontinent. The agreement was signed for a period of 40 years, after which the ownership of the VITT is to be transferred to the Government of Kerala.
What are the key features of the Vizhinjam Agreement?
Under the Vizhinjam Agreement, APSEZ is responsible for the construction, operation, and maintenance of the VITT. The government of Kerala, on the other hand, is responsible for providing land, environment clearance, and other necessary infrastructure for the project. As per the agreement, the government of Kerala will receive a revenue share of 4.5% of the gross revenue earned by APSEZ from the VITT for the first 18 years of the agreement.
One of the key features of the Vizhinjam Agreement is the provision for a dedicated railway line to be built connecting the VITT to the main line. This will facilitate the smooth movement of cargo to and from the port, reducing the cost and time involved in logistics. Additionally, the agreement also provides for the development of a Free Trade Warehousing Zone (FTWZ) and a Special Economic Zone (SEZ) adjacent to the VITT, which will help in attracting more investment to the region.
What is the current status of the Vizhinjam International Transshipment Terminal?
The construction of the VITT began in 2015 and is expected to be completed by 2023. Once operational, the VITT is expected to become a major transshipment hub in the region, catering to the needs of the growing trade in the Indian Subcontinent. The VITT is expected to have a capacity of 4.1 million TEUs (twenty-foot equivalent units) per annum, making it one of the largest deep-water ports in the country.
In conclusion, the Vizhinjam Agreement is a significant development in the infrastructure sector of Kerala. The VITT, once operational, is expected to boost the economic growth of the region and create job opportunities for the local population. The successful implementation of the project will be a testament to the power of PPP agreements in driving economic development in the country.