Kerala to Develop Rare Earth Corridor Connecting Vizhinjam Port to Chavara

Thiruvananthapuram: Kerala’s Vizhinjam International Multipurpose Deep-Sea Port is set to become a major driver of the state’s economic and maritime growth, according to the budget speech delivered by Finance Minister K N Balagopal in the Legislative Assembly. Since its operationalisation, Vizhinjam Port has handled 611 container ships and 13.14 lakh TEU containers, signalling its growing significance in trade and logistics. The Chief Minister inaugurated the second phase of the port project on 24 January 2026, with the Government aiming to complete the project 17 years ahead of the originally scheduled 2045 completion date.

The Finance Minister announced allocations of 17 crore for industrial and logistics infrastructure at Vizhinjam, 4 crore for acquiring 50 acres in Kuttichal along with infrastructure development, and a plan to invest1,000 crore through KINFRA, supported by an initial allocation of 00 crore. Non-major ports in the state will also be developed with 65 crore earmarked to optimise opportunities presented by Vizhinjam Port.

Private sector participation is expected to be substantial, with the Adani Group projected to invest 10,000 crore over five years in the port’s subsequent phases. Additional investments of at least 30,000 crore are expected from central and state governments and private agencies in allied sectors around the port, generating significant employment opportunities. Highlighting Kerala’s strategic advantage, the Finance Minister pointed out that the state’s coastline is rich in rare earth elements like thorium and scandium, essential for space research, defence, energy, aviation, electric vehicles, drones, and medical equipment. A ‘Rare Earth Corridor’ connecting Vizhinjam Port to Chavara and onward to Kochi is being planned, with a specialised centre near KMML Chavara. This initiative is expected to attract 42,000 crore in investment and generate 50,000 jobs, establishing Kerala as the nation’s permanent magnet hub. Kerala’s vast marine resources also offer significant potential. The budget allocates ₹10 crore for early initiatives to strengthen the Blue Economy, encouraging private investments and new marine industries under the PPP model.