State set to gain Rs 400 crore in revenue from Vizhinjam project

Thiruvananthapuram: The State government will receive nearly Rs 400 crore a year in taxes and other remittances once the Vizhinjam International Seaport becomes fully operational. This will come as a boon to the government that is going through a severe financial crisis. According to the agreement, the government will begin receiving dividends from the port project only from the 15th year of its operations, but the tax revenue that begins flowing into the treasury from now will be a bonus for the State. 

The chief amounts of revenue accruing to the government will come from the Goods and Services Tax (GST) that is imposed on the levies payable to the port by ships, charges for handling the containers, and bunkering services provided to the vessels. The rate of GST for most of the services is 18%. This will be shared equally by the Centre and the State. Another important source of revenue is the IGST imposed on machinery and other equipment that are imported through the port. An amount of Rs 30 crore was received as GST when three cranes were brought to the port the other day.

When the port becomes fully operational by 2027, it will be capable of handling 30 lakh containers a year. With such a facility in place, almost three-fourths of the vessels that now depend on the ports in Colombo, Dubai’s Jebel Ali, and Singapore are likely to shift their operations to Vizhinjam. The seaport is expecting an income of Rs 2,500 crore a year.

Inauguration today
Zhen Hua, the first cargo vessel to arrive at the Vizhinjam International Seaport, will officially berth at the port at 4 pm on Sunday. 
The Union Minister for Ports, Sarbananda Sonowal, will be the chief guest at the function where the Chief Minister Pinarayi Vijayan will inaugurate the project. The State Minister for Ports,  Ahamed Devarkovil, will preside over the event.