Kerala Inks ₹2,000 Crore MoUs with Central PSUs for Vizhinjam Logistics Overhaul

The Kerala government has signed Memoranda of Understanding (MoUs) worth ₹2,000 crore with three central public sector undertakings (PSUs) to roll out a comprehensive logistics master plan at the Vizhinjam International Seaport, a strategic move to reshape the state’s maritime sector. The agreements were formalized on February 23, 2026, at the Legislative Assembly Building in the presence of Chief Minister Pinarayi Vijayan, involving state-owned Vizhinjam International Seaport Limited (VISL) and Indian Oil Corporation Limited (IOCL), Container Corporation of India (CONCOR), and Central Warehousing Corporation (CWC).
This public sector-led initiative ensures critical infrastructure remains under government control even as the port operates on a Public-Private Partnership (PPP) model with Adani Group, preventing monopolies in cargo handling and guaranteeing fair pricing for traders. The plan allocates investments across three key areas: IOCL will invest ₹700 crore in large-scale bunkering facilities to fuel mother ships, positioning Vizhinjam as a vital refueling node on Indian Ocean trade routes, and boosting ancillary revenues.
CONCOR commits ₹600 crore to rail-linked infrastructure, including inland container depots and freight stations, facilitating faster nationwide cargo movement. CWC will deploy ₹700 crore for a 50-acre multimodal logistics park featuring cold storage and export-oriented units, imposing no financial burden on the state exchequer. These developments aim to enhance cargo efficiency, slash logistics costs, and integrate Vizhinjam into India’s supply chain ecosystem.
Attendees included Ports Minister V N Vasavan, Ports Secretary Dr A Kowsigan IAS, VISL MD Dr Divya S Iyer IAS, and senior PSU executives. The master plan builds on prior approvals for multimodal logistics parks (MMLPs) near Vizhinjam, reinforcing public sector synergy amid the port’s expansion. Expected to catalyze economic growth, the project underscores Kerala’s vision for Vizhinjam as a transshipment powerhouse with diversified maritime services.