The Vizhinjam International Seaport (VISL) is not 'financially very attractive,' says a report by Deloitte Touche Tohmatsu India, commissioned by the Vizhinjam International Seaport (VISL) to study the project. The report has analysed the costs and benefits of the project in detail and estimated its rate of return.
The Deloitte report submitted in last May has put the total expenditure of the Vizhinjam port project - including all its three phases - at Rs 14,283 crore. The project will not be able to generate enough cash inflows to recover this investment and earn a profit," it says.
The financial internal rate of return for the project turns out to be 2.54 per cent and the financial net present value is at a negative Rs 5,751 crore. VISL said the report was not conclusive.