Kerala CM Vijayan writes to PM Modi to withdraw VGF reimbursement for Vizhinjam seaport | India Information – Occasions of India

NEW DELHI: Kerala’s chief minister Pinarayi Vijayan on Saturday wrote a letter to Prime Minister Narendra Modi by, requesting to withdraw Finance ministry’s determination that requires the state to repay the viability hole funding (VGF) for the Vizhinjam Worldwide Seaport venture.
He highlighted that the Centre’s place contradicts normal VGF tips, which outline it as a non-repayable, single-instance grant.
“Because the Rs 817.80 crore supplied by Authorities of India is to be repaid on Internet Current Worth (NPV) foundation, this is able to lead to reimbursement of Rs 10,000 to 12,000 crore from the State Exchequer in precise phrases, computed on projected rates of interest and income realization from the port over the interval of reimbursement,” Vijayan wrote in his letter dated December 10.
“If the payback is insisted by the Authorities of India, the help supplied wouldn’t be a capital grant however could be a mortgage. This clearly is opposite to the very intent of the scheme,” he added.
The CM additionally highlighted states substantial funding of Rs 5,554 crore within the venture, whereas requesting the withdrawal of VGF reimbursement requirement.
“Contemplating the foremost funding made by the State (Rs. 5,554 crore) and the returns accruing (together with financial savings on overseas alternate) to the nation as an entire, it’s only simply and honest that the choice requiring reimbursement of Rs. 817.80 crore supplied by Gol as VGF in NPV phrases is withdrawn on the earliest,” the letter talked about.
Earlier in November, CM Vijayan had written with finance minister Nirmala Sitharaman, looking for help for the discharge of the Centre’s VGF share with out reimbursement circumstances.
The Union Cupboard in June sanctioned the VGF scheme for offshore wind vitality developments.