The Kerala government on Wednesday accelerated the process for establishing a greenfield port project in the northern district of Kannur, aiming at boosting industrial and economic development in the Malabar region of the state through the port and associated industrial parks and special economic zones.
The state cabinet, chaired by Chief Minister Pinarayi Vijayan, on Wednesday sanctioned a draft project report submitted by Malabar International Port and SEZ Limited (MIPSL), a company established for the development of the Kannur Azhikkal International Greenfield Port.
As part of this, the government said that a financial structure report, prepared and submitted by the Centre for Management Development (CMD), would be accepted, and necessary action would be taken accordingly.
The main project under the state government's ports department is the development of the Kannur Azhikkal International Greenfield Port and its associated industrial park and special economic zones.
To facilitate this, MIPSL was formed as a special company, with the chief minister serving as its chairman.
The port development aims to accommodate Panamax-sized container ships with a capacity of 5,000 TEU or 8,000-75,000 DWT, at a depth of 14.1 metres.
In a statement, the chief minister's office said the Expression of Interest (EOI) will include a provision for the concessionaire to share a portion of the income with the government from the project's inception.
This is to ensure that the government does not incur additional financial burdens for the development of the project's subsequent stages, the statement added.
It also announced that in-principle approval was given for the availability of "viability gap funding" (VGF) from the Centre.
A detailed soil investigation (geotechnical investigation) of the project area has been completed, and the final report was received in January 2022.
The project aims to increase export-import trade and promote economic development based on the port.
The consultant, Tata Consulting Engineers Limited (TCE), submitted the Inception Report for Special Economic Zones in March 2021 and the Hinterland Business Potential Report in March 2022.
"Initial steps are being taken to acquire and transfer land in Kannur, Kasaragod, Wayanad and Kozhikode districts for industrial park development and other purposes. The master plan is also being prepared," the statement said.
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