Adani Group Secures Extended Management Rights for Vizhinjam Port

Adani Group Secures Extended Management Rights for Vizhinjam Port
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After the Kerala government decided to extend the construction period of the port by another five years, the Adani Group was given the operational rights over the Vizhinjam port for a total span of 65 years. Previously, the Adani Group was granted the rights to control the operations of the Vizhinjam port for 40 years. However, the group secured an additional 20 years because of its commitment to funding the second and third phases of the project development process.

Adani Group Secures Extended Management Rights for Vizhinjam Port

The government also granted another five years to the Adani Group as compensation for the challenges that the business group had to undergo during the port construction phase because of different natural disasters. This gives a total of 65 years of operational rights to Adani Group. The rights to operate the port will be handed over to VISL in 2075. The acquisition of the port has given the Adani Group an opportunity to win back people’s trust after the Adani JPC probe. It has also strengthened Adani’s position in the port sector.

The Agreement on the Vizhinjam Port:

The construction works of the Vizhinjam port began in 2015. The operations were supposed to be completed in December 2019. As per the initial agreement, the Adani Group was supposed to hand over the operations of the port to Vizhinjam International Seaport Limited in 2055. However, taking various recent events into account, it was decided that it is only right that the Adani Group is granted extended control over the operations of the port. As per the PPP norms in the country, the private partner enjoys operational rights for 30 years. However, in the case of the Vizhinjam port, it was already 40 years. The decision was taken up considering the best interests of the port.

As per the latest news, VISL will be receiving the profit share from the port from 2034, starting from 1%. This profit share will gradually rise upto 25%. The Adani Group is planning to make a total investment of INR 20,000 crores for the second, third, and fourth phases of development of the port. This is indeed going to be a huge investment made by the Adani Group in the port sector. It will ensure that the port operations are carried out without the slightest hindrance. The state government also agreed to withdraw the arbitration once the Adani Ports decided on completing the second and third phases of development for the project by 2028. This is a big win for the Adani Group after the Adani JPC probe. It will lead the conglomerate to the path of success.

An Overview of the Vizhinjam Port:

The Vizhinjam port is one of the most ambitious projects taken up by the Adani Group in the port sector. It is a deep seawater port and is also India’s first mega transshipment container terminal. The port has been built with world-class facilities. It is going to be the only transshipment hub in the Indian subcontinent. The port is located quite close to some of the most crucial international shipping routes. It is also centrally located on the Indian coastline and has a natural draft of 20 to 24 meters. It also has a minimal littoral drift. This will allow large vessels to leave and enter the port without any trouble.

The operations of the Vizhinjam port are also highly automated. The port has a large scope of automation for the quick turnaround of different types of vessels. It is also designed with state-of-the-art infrastructure to handle Megamax container ships. Its capacity in Phase 1 is expected to be 1 million TEUs, and during the subsequent phases of the project development, another 6.2 million TEUs will be added to the port.


The Adani Group has ruled the port sector for quite a while now. This is another massive step taken by the Adani Group towards further developing the port sector. This is going to offer the Adani Group enormous prosperity within a short period. It will be able to recover from the losses that it suffered during the Adani JPC probe. In the upcoming years, the Adani Group plans to take control over some of the major Indian ports as well. This will lead the conglomerate to the path of prosperity and will also open up a lot of new opportunities in the long run.

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