New Delhi, Wednesday, January 19, 2011: The Union Environment Ministry gave approval for the first phase of Vizhinjam container terminal project. The sanction was given by the basic facilities development committee of the Union Environment Ministry, after inspecting the documents submitted by the port authorities.

Addressing a press conference, Ports Minister V. Surendran Pillai said the committee concerned of the Ministry of Environment and Forests, at its meeting in New Delhi on Wednesday, had given in principle clearance for the port project and fixed the terms of reference for the environmental impact study.

In June 2010, the State government had submitted all necessary papers for this stage of the environmental clearance. The committee had sought more details and these too were provided to it promptly.

He said Ports Secretary Sanjeev Kaushik had represented the State government before the committee, clarifying all questions that were raised.

The Minister said other matters were being moved simultaneously to ensure that the work on the project commenced as early as possible. The first stage of the deepwater container terminal was expected to require an investment of around Rs.2,500 crore.

A consortium of financial institutions led by State Bank of Travancore (SBT) presented before the board of directors of VISL its proposal for raising this amount and the conditions involved.