Vizhinjam Port Industrial Hub: Kerala Allocates Funds for Development



Kerala has now put money aside to build up the land around its Vizhinjam Port. This big step means the area will soon have many factories and businesses. This move helps make the port a main center for trade and work, bringing more jobs and money to the state right away. It shows the strong push to make Vizhinjam a top spot for business, changing the future of the region.

State Government Moves Forward with Industrial Area Plan

The Kerala state government has taken a significant step towards creating an industrial area near the Vizhinjam International Seaport. It has given approval for a payment of 1. 83 crore rupees to hire a consultant. This consultant will create a detailed plan for industrial progress around the port. The goal is to speed up the setting up of industries linked to the port and build the necessary supporting structures. The consultant is expected to be chosen by the end of August 2025. Once chosen, the consultant will have one year to finish their study. But, the government will accept the study earlier if it is ready before the deadline. This study will map out a clear path for both the sea-based facilities and the land-based support needed for the industrial growth. A top government official said that they are making sure the base for a port support system is put in place without any more delays.

Understanding the Vizhinjam Seaport

The Vizhinjam International Seaport is an essential project for Kerala. It is a deep-water port designed mainly for moving large containers from one ship to another. One of its key features is its natural deep water, which means even the world’s largest container ships can easily come to the port. The port is also well-placed, being only a short distance from the main international shipping routes that connect Europe, the Middle East. the Far East. The port started its test operations in July 2024, with its first large ship docking then. Full commercial operations began in December 2024. The Prime Minister formally opened the port in May 2025, marking a new time for growth in south Kerala. The first stage of the port cost about 8,867 crore rupees. This money came from the Kerala government, the central government. Adani Ports & Special Economic Zone Limited (APSEZ). The Kerala government put in around 5,595 crore rupees, which is about 63 percent of the first stage cost. The central government also gave 817. 80 crore rupees as “viability gap funding.” But, this money comes with a condition that the state must pay it back once it starts earning money from the port. Adani Ports & SEZ Ltd is working on the port development under an agreement that lasts for 40 years.

Plans for the Industrial Area

To make sure the port helps industries grow, Vizhinjam International Seaport Limited (VISL) has been given power to set aside at least 200 acres of land. This land will be used to build vital industrial support structures such as:

    • Places to store containers.
    • Areas for handling goods.
    • Storage for oil products.
    • Warehouses.

The land will also be used for specific industry groups, like food making and other types of making units. The Kerala Maritime Board (KMB) has also suggested giving five acres of essential land near the Harbour Road to the government. This land would be used for container areas, freight places, oil storage. warehouses, possibly through a joint project with private companies. This idea is waiting for the government’s final approval. Beyond the immediate port area, the Kerala government has also marked 340 acres of land in Neyyattinkara, Balaramapuram. Kattakada for industrial parks. These places are about 20 to 30 kilometers away from the port. The bigger plan for port-based industrial growth includes eight new towns that will form a growth area outside the main city. There are also plans for a large 6. 3 square kilometer logistics center in Vizhinjam and a 4. 01 square kilometer health tourism center in Kovalam.

A senior government official commented, “We are making sure that the basics for a port system are put in place without any more delays.” The official also noted, “The study will lay out in detail the supporting structures, container areas, logistics groups. sea access needed to make Vizhinjam port a center for industry.”

Road and Rail Connections

Improving connections to the port is a key part of the overall plan. A temporary road to National Highway 66 at Thalakode is expected to be ready soon. This temporary road has been tested with loaded trucks and has lights and signs in place. But, the plan for a permanent cloverleaf road junction at Thalakode faces some challenges. This project is expected to cost 360 crore rupees and needs 30 acres of land. Its progress has slowed down because talks about sharing the costs between the state government and the National Highways Authority of India (NHAI) have stopped. Even with these delays, VISL has already paid 11 crore rupees to landowners for 36 cents of land related to these road works. For rail connections, there is a plan for a 9-kilometer long tunnel to link the port with the main railway line at Balaramapuram. The government expects to invite bids for this railway project soon.

Impact and Future Outlook

The Vizhinjam Port is seen as a project that will greatly change the economic picture of Kerala and make India’s sea transport better. By making it cheaper to move goods and better at handling cargo, the port aims to increase India’s share in world trade. It will help reduce how much India depends on foreign ports for moving goods from one ship to another. Experts believe the port will lead to big growth in areas like moving goods, transport, storage. related industries. It is also expected to bring in a lot of money for Kerala over the next 36 years.

Minister for Industries P. Rajeeve stated that “an assembling group and a surrounding area will be built with Vizhinjam port as the center.” He added that this development would not be limited to the district or state borders.

The presence of private companies in this project has brought new ideas and made things work better. But, challenges remain, such as finding enough land and the rising cost of land near the port. Despite these issues, the government is actively looking for land for essential structures like truck terminals and container areas. The port is positioned to become a central point for global sea trade, with plans to handle a large number of containers each year. Vizhinjam Port Industrial Hub: Kerala Allocates Funds for Development illustration

Categories: