2 hours Ago
NEW DELHI: The central government has made it clear in Parliament that they cannot accept Kerala's demand for the Vizhinjam port. It will not back down from its stance of sharing revenue. There will be no change in the VGF condition.
The central government has also made it clear that the Tuticorin model cannot be implemented in Vizhinjam. The center reiterated its stance in response to a question from Rajya Sabha MP Harris Beeran. Chief Minister Pinarayi Vijayan had sent a letter to Prime Minister Narendra Modi the other day, demanding that the strange criteria related to the Vizhinjam port be withdrawn.
The state's disagreement is with the union finance ministry's decision to repay the Viability Gap Fund in installments. This is a deviation from the general policy that the central government has been maintaining regarding the VGF grant. VGF should be granted as a grant.
The chief minister had also said in his letter to the Prime Minister that if the amount provided by the center for the Vizhinjam project is interpreted as a loan, the repayment including interest will be a huge liability for the state. Pinarayi Vijayan points out that if 817.80 crore is given, about 10000-12000 crore will have to be repaid.
The central government, which is spending a meager amount, will be in a position to capture a large profit. The chief minister had earlier said that Kerala will have to find 817 crore on its own..
