India
Kerala CM Vijayan writes to PM Modi to withdraw VGF refund for Vizhinjam seaport | India News – Times of India
He emphasized that the Centre’s position contradicts the standard VGF guidelines, which define it as a non-refundable, one-time grant.
“Since the Rs 817.80 crore provided by the Government of India has to be repaid on a net present value (NPV) basis, this would result in a repayment of Rs 10,000 to 12,000 crore from the public purse in actual terms calculated on the basis of the projected interest rates and revenue realization of the port during the repayment period,” Vijayan wrote in his December 10 letter.
“If the Government of India insists on repayment, the assistance provided would not be a capital grant but a loan. This is clearly contrary to the intention of the scheme,” he added.
The CM also highlighted that states have made substantial investments of Rs 5,554 crore in the project while requesting withdrawal of the reimbursement requirement for VGF.
“Considering the large investments made by the state (Rs. 5,554 crore) and the returns (including foreign exchange savings) to the nation as a whole, it is only just and fair that it decides that reimbursement of Rs. 817.80 crore requirement, provided by Gol if VGF in NPV terms is withdrawn at the earliest,” the letter said.
Earlier in November, CM Vijayan had written a letter to Finance Minister Nirmala Sitharaman, seeking assistance for release of the Centre’s VGF stake without repayment terms.
The Union Cabinet approved the VGF scheme for offshore wind energy developments in June.
