As PM Modi inaugurates Vizhinjam port, a fierce 'credit' war rages in Kerala

The ₹8,867-crore project, strategically located 10 nautical miles from a major international shipping route, is poised to reduce India’s reliance on foreign ports like Colombo, which handles 75 per cent of the nation’s transshipment containers.

Yet, as the first ship, San Fernando, docked in July 2024, a fierce political battle over credit has overshadowed the port’s launch, while questions about its long-term viability and global competitiveness linger.

Three-way tussle

The commissioning has ignited a three-way tussle among Kerala’s major political players: the ruling CPI (M)-led LDF, the Congress-led UDF, and the BJP.

Just ahead of Prime Minister Modi’s visit for the Vizhinjam port commissioning, BJP hoardings began appearing across Thiruvananthapuram, thanking Modi and crediting him for the project.

Also read: Kerala CM urges PM Modi to revoke Vizhinjam port VGF decision

In response, the DYFI quickly put up even larger hoardings right next to them, presenting a breakdown of the project’s funding. Their hoarding stated that the first phase cost ₹8,867 crore — of which 62 per cent was borne by the Kerala government, 29 per cent was Adani’s share, and the remaining 9 per cent was a VGF loan to be repaid by the state. The Union government’s contribution was listed as zero.

At the bottom, the hoarding called the project Vizhinjam Vijayagatha — a phrase that both described it as a success story and echoed the name of Kerala Chief Minister Pinarayi Vijayan.

Congress takes credit too

On the other hand, the Congress, which claims the initiation of the project under former Chief Minister Oommen Chandy, insists its groundwork laid the foundation.

Leader of the Opposition VD Satheesan has been vocal, alleging delays under the LDF government.

Also read: Vizhinjam port: Adani Group to invest Rs 20,000 crore in remaining phases

“If the Pinarayi government had been keen on finishing the works, the port could have been commissioned by 2019,” he said, accusing the LDF of extending timelines without demanding compensation. Satheesan also boycotted the commissioning ceremony, citing an initial exclusion from the guest list and accusing Chief Minister Pinarayi Vijayan of “hijacking credit”.

Modi’s vision

The BJP, meanwhile, emphasises the Central government’s support, particularly the ₹818 crore in Viability Gap Funding (VGF), though Kerala ports minister VN Vasavan noted this was offered only as a repayable loan despite the state’s requests for grants.

“We accepted the loan format but still disagree with the approach,” Vasavan said.

Local BJP leaders have credited Modi’s vision, with supporters greeting the Prime Minister along his route from Shangumukham to Vellayambalam when he reached the capital city on May 1.

The inclusion of several BJP leaders, including state president Rajeev Chandrasekhar, who hold no official roles in Kerala, in the invitation list sparked controversy, particularly among Congress and LDF leaders.

Rajeev Chandrashekhar, who was given a seat on the stage, was seen sitting alone for hours and shouting slogans.

State tourism minister PA Mohammed Riyas said, "Just have a look - even our state finance minister is seated among the audience, while the PMO has invited their state president to the stage. And, he is shamelessly sloganeering from the stage. This is how the Union government is politicising development. People will not accept this."

The LDF, led by Vijayan, underscores its accomplishments in navigating the financial crises in the state, natural disasters like the Ockhi Cyclone, and the COVID-19 pandemic.

“Vizhinjam is the symbol of the willpower and foresight of the LDF government,” Vijayan said during a port review. Vijayan also dismissed credit disputes, stating, “There is no need to argue over it... Ships won’t come to a port by merely laying a foundation stone.”

Also read: Cong slams Kerala CM for omitting Oommen Chandy mention at Vizhinjam port event

He attributed the port’s success to the people of Kerala, downplaying political claims.

Kerala ports minister VN Vasavan addressed the Opposition’s contributions, noting, “The project has acknowledged the contributions made during the Oommen Chandy government. While the Left did not agree to the original agreement, the real construction began during the LDF tenure.” He added, “It’s not a CPI(M)-BJP project; it’s a joint effort by both governments.”

Controversies galore

The commissioning was not without friction. A controversy erupted over Satheesan’s alleged exclusion from the guest list, prompting Congress accusations that Vijayan was currying favour with the Union government to evade investigations against him and his family.

Kerala Pradesh Congress Committee president K Sudhakaran said, “By inviting the Prime Minister and keeping away Mr Satheesan, Mr Vijayan was attempting to curry favour with the Union government.”

An invitation was later sent, but Satheesan deemed it insufficient, stating, “The letter did not mention why I was being invited or whether I was just an invitee or a participant in the programme.”

Further, a Central government advertisement omitting Vijayan’s photograph also drew criticism, while the presence of Vijayan’s daughter T Veena and grandson Ishan at a port review meeting sparked questions from former vigilance director Jacob Thomas.

Vijayan denied reports of his family’s involvement in official meetings.

Early promise

Despite political wrangling, Vizhinjam has shown early promise. Since its trial run began in July 2024, the port has handled 285 ships and 593,000 TEUs, surpassing expectations.

Also read: Kerala’s Vizhinjam port makes history as it receives first mothership

“MSC ships which previously did not dock in Dubai or Colombo have reached Vizhinjam,” Vasavan said, highlighting its appeal. The port, India’s first semi-automated facility, received its commissioning certificate on December 3, 2024.

Vasavan projected an annual capacity of 3 million TEUs, with potential to scale to 4.5 million based on current efficiency.

Vijayan hailed the port’s strategic significance: “Kerala will become an important centre on the world maritime map.” He noted that Colombo’s dominance in handling 75 per cent of India’s transshipment containers has led to significant foreign exchange losses, which Vizhinjam aims to curb.

A railway link to the national network is also under construction to bolster connectivity.

Vizhingam's challenges

Questions remain about Vizhinjam’s ability to rival established transshipment hubs like Colombo, Singapore, Dubai, and Malaysia’s Port of Tanjung Pelepas.

Colombo’s West International Terminal, commissioned recently, boasts a 20-meter depth and a 3.2 million TEU capacity, posing stiff competition. Singapore and Dubai remain global giants, with advanced automation and entrenched shipping networks.

Analysts suggest Vizhinjam’s naturally deep waters and proximity to shipping routes give it an edge, but sustainability hinges on strategic partnerships.

Funding disputes also cloud the horizon. Vijayan has pressed the Union government to convert the VGF loan into a grant, stating, “The state government would continue to put pressure on the Union government.” When fully operational by 2028, the port is expected to handle 4.5 million containers, but scaling infrastructure and maintaining competitiveness will require sustained investment.

Vizhinjam’s environmental clearance for its next two phases, secured in March 2025, ensures completion by 2028, ahead of schedule. An additional ₹10,000 crore investment is planned for these phases, signalling confidence in its growth.

However, local concerns persist. Satheesan recalled past CPM allegations that the port was a “₹6,000 crore real estate scam” threatening fishermen’s livelihoods, highlighting early dissent.

While the project has created over 5,000 jobs, ensuring community support and environmental stability will be critical.

As Vizhinjam embarks on its journey, its success will depend on navigating political divides, securing global partnerships, and addressing competitive pressures. For now, the port stands as a testament to Kerala’s resolve, with Vijayan’s steadfast leadership steering it through turbulent waters.

Whether it can eclipse Colombo or Singapore remains an open question, but its commissioning marks a bold step toward reshaping India’s maritime future.