Kerala falls behind while TN eyes Vizhinjam port windfall
The Tamil Nadu govt recently approved four new SIPCOT industrial parks in Tirunelveli district—just across the border and within easy reach of Vizhinjam.
A govt order has been issued to acquire over 2,260 acres of land for two parks in Nanguneri. A third park is planned at Moolakaraipatti, while Phase 2 of the existing SIPCOT park in Gangaikondan is ready for launch. All these parks are being developed to utilize the potential of Vizhinjam Port.
Meanwhile, social media in Tamil Nadu has been abuzz with posts highlighting these new industrial developments, positioning south Tamil Nadu as the prime beneficiary of Vizhinjam's transhipment traffic and economic potential. Many posts underline the proximity of these parks to the port, promoting it as a strategic advantage—especially since the state missed out on developing a port at Enayam or Colachel.
In stark contrast, Kerala has so far identified only about 100 acres near the port through Kinfra, with land negotiations still ongoing in other areas of Thiruvananthapuram district.
by Taboola
by Taboola
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A senior Kerala govt official, speaking on condition of anonymity, acknowledged that Tamil Nadu, which has large land parcels available, is seizing the opportunity and attracting investors by offering competitive lease rates—between Rs 70 lakh and Rs 1 crore for 99 years. "This will adversely impact Thiruvananthapuram's industrial prospects. Major investments may shift to Tamil Nadu if Kerala fails to act swiftly on port-led industrialisation," the official said.
APM Mohammed Hanish, principal secretary of the industries department, said Kerala envisions a port-based development corridor stretching from Palakkad to Vizhinjam. "Just as industrial parks are coming up in Tirunelveli and Tuticorin, we already have one in Palakkad. The distance from Palakkad to Thiruvananthapuram is only six hours. The port's impact should extend along this corridor," he said. He added that Kinfra has identified 150 acres a few kilometres away from Vizhinjam Port and the govt is looking for land in Thiruvananthapuram district.
At the recent Invest Kerala summit, several investors expressed interest in setting up units near Vizhinjam. Dubai-based Sharaf Group offered to invest Rs 5,000 crore in an Inland Container Terminal. However, the govt asked them to find suitable land on their own. Kinfra had identified about 340 acres in areas like Neyyattinkara, Balaramapuram, Kattakada and Kuttichal, but most of this land still lacks official clearance.
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