Kerala to approach Centre after completing preparatory studies for financial aid for Port City project

A day after The Hindu reported that the Centre has turned down a plea by Kerala seeking financial assistance for the ambitious Port City project of the Kerala government, the State government has clarified that it would approach the authorities concerned with relevant documents after the completion of preparatory studies in accordance with the prescribed procedures.

The Hindu article, titled Centre denies financial aid for Kerala’s Port City project citing lack of feasibility study, DPR published on July 31, 2026, reported that the Centre had turned down the plea of Kerala citing lack of feasibility study reports and Detailed Project Reports (DPR).

In a statement issued in Thiruvananthapuram on Friday (July 31, 2026), the State government said that it has initiated the process of detailed project formulation. Feasibility studies, techno-economic analyses, DPRs, financial models and implementation strategies for the various components of the Port City initiative are being prepared through extensive consultations with domain experts, technical institutions, industry stakeholders and the government agencies concerned.

“Upon completion of these preparatory studies, the individual projects will be taken forward in accordance with the prescribed procedures and submitted to the appropriate authorities for consideration under the relevant funding and approval mechanisms,” said the State government.

Vision document

It also clarified that the memorandum submitted by the State to the Union government was a vision document outlining Kerala’s long-term strategy for developing an integrated maritime, logistics and industrial ecosystem. The memorandum was intended to articulate the State’s strategic vision and initiate discussions with the Government of India and other stakeholders on the broad framework for developing the proposed Port City initiative.

The memorandum was not conceived as a DPR or as a proposal seeking immediate financial assistance. It was prepared as a conceptual framework to guide the subsequent stages of project development. The State government remains firmly committed to the successful implementation of the Kerala Port City vision and is confident that the initiative will evolve into a transformative programme that will strengthen the State’s maritime economy, enhance logistics infrastructure, attract substantial investments, generate large-scale employment and reinforce Kerala’s position as a leading maritime gateway of the country, said the statement.

The Union Ports, Shipping and Waterways Ministry has confirmed that it has received a memorandum from the Kerala government seeking support under various Government of India initiatives, including PM Gati Shakti, Sagarmala, National Logistics Policy, Blue Economy initiatives and Maritime Amrit Kaal Vision 2047, for projects such as last-mile rail connectivity to the Vizhinjam port and development of logistics and seafood processing infrastructure. The memorandum sought financial, policy and institutional support through government assistance, multilateral financing and in Public Private Partnership (PPP) mode.

The memorandum also envisaged integration of the Vizhinjam International Seaport with Cochin Port, National Waterway-3, Kerala’s non-major ports, the State’s four international airports and the national road and rail network as an integrated multi-modal logistics network. However, the Centre in a communication to the State made it clear that the memorandum did not contain any feasibility study, techno-economic report or DPR in respect of specified projects, which is a prerequisite for assessing the technical and financial viability of the projects and for its appraisal by the competent authority. Therefore, it is not possible to give specific commitment for financial support or timelines at this stage.