THIRUVANANTHAPURAM: Kerala signed Thursday a supplementary concession agreement with Adani Vizhinjam Port Pvt Ltd, paving the way for earlier-than-expected revenue gains from Vizhinjam deep-water international seaport near Thiruvananthapuram. The Rs 7,700-crore port, built as a public-private partnership with Adani Group, is now set to be fully operational by Dec 2028.
“With the capacity expansion to be completed by Dec 2028, the port’s total revenue projection has increased from Rs 54,750 crore to Rs 215,000 crore over the 36-year operational period. Govt’s revenue share will also increase from Rs 6,300 crore to Rs 35,000 crore,” minister for ports VN Vasavan said Thursday.
The revised agreement ensures that the state will begin receiving its share of revenue from the project as originally planned in 2034, despite delays in construction. Under the previous pact, revenue sharing could have been delayed until 2039 due to project setbacks. The updated deal also broadens the revenue-sharing scope. Initially, the state was entitled to profits generated solely from the first phase of the port. Under the new terms, Adani Ports will share profits from all four phases starting in 2034.
Indirect revenue for the state is projected to rise too. Kerala’s GST income from port operations is expected to total Rs 29,000 crore over the contract period. Corporate income tax revenue is also anticipated to grow. These changes will yield an additional Rs 48,000 crore in revenue, including the state’s share and GST over 36 years. With the capacity now expanded to 4.5 million containers annually — up from the initially planned 1 million — Vizhinjam port is set to become southern India’s largest freight terminal.
The revised agreement also reduces Kerala’s financial commitments during the port’s construction phase. The state’s viability gap funding obligation to Adani Ports has been reduced from Rs 408.90 crore to Rs 365.10 crore.