HSA Advocates Advised Vizhinjam International Seaport on the Supplementary concession agreement executed between Government of Kerala and Adani Vizhinjam Port

HSA Advocates advised Vizhinjam International Seaport Limited (VISL) on the supplementary concession agreement executed by and between the Government of Kerala (GoK) and Adani Vizhinjam Port Private Limited (AVPPL), a subsidiary of Adani Ports and Special Economic Zone Limited, for the development of Vizhinjam International Deepwater Multipurpose Seaport (Port), amending the concession agreement dated August 17, 2015. VISL is the GoK agency authorised and entrusted to act as the implementing agency for the project and to exercise the rights granted to GoK under the concession agreement.  The Port in Vizhinjam is a global transshipment hub with an intended capacity of 30 Lakh Twenty-foot Equivalent Units (TEUs).

The project was delayed due to various force majeure events, including the Covid-19 pandemic, which led to certain disputes between GoK and AVPPL. GoK and AVPPL agreed to settle such disputes and mutually withdraw their claims/ counterclaims. In furtherance of this, the parties agreed to the completion of the first phase of the project by December 2024 and achieving capacity augmentation/ expansion by 2028, and a five-year extension of the concession period. The supplementary concession agreement was prepared and executed to capture the understanding and agreement reached between the parties. Through the supplementary concession agreement, AVPPL has now agreed to achieve capacity expansion by 2028, committing/unlocking an investment of approximately Rupees ten thousand crore over the next four years. As agreed under the supplementary concession agreement, GoK will now receive a share of the Port’s revenue from 2034, as opposed to the earlier timeline of 2039. The Port commenced commercial operations from December 3, 2024.

HSA Advocates advised and assisted VISL in drafting, structuring, negotiating and finalizing the supplementary concession agreement, including provisions and understanding thereunder in relation to the revenue sharing model, further financing, railway connectivity and capacity augmentation.

HSA Advocates have been the legal advisers to VISL and to the project since its inception. HSA was involved in the drafting of the bidding documents and concession agreements and has thereafter, since the successful award of the concession to the private developer, been providing project implementation support to VISL. HSA's engagement and continued involvement with the project for over a decade, is a testimony to HSA's market leading infrastructure and PPP practice.

The HSA team was led by Hemant Sahai (Founding Partner) and Soumya De Mallik (Partner), with assistance from Prithviraj Chauhan (Principal Associate) and Meghana R (Associate).