Kerala government is taking efforts to secure viability gap funding (VGF) for its proposed international container transshipment terminal at Vizhinjam port.
The state Minister for Ports K Babu clarified that the state government would implement the project, which also envisages deepwater, multi-purpose port in the area, based on the landlord model of development.
Under this model, the state government will set up basic infrastructure for the port while the private concessionaire takes care of the superstructure and operations.
In order to assist infrastructure projects which face viability gap owing to its inherent nature, the central government set up a Viability Gap Fund.
The minister reiterated that the state government was merely following up on procedures to secure viability gap funds made available by the centre.
The Union Ministry for Environment and Forests approved the Terms of Reference (TOR) for environmental clearance for the project in July 2011.
Following this, a detailed study of the environment was launched across, and necessarily involving, two full monsoons in the region.