The Tamil Nadu government has acted quickly to take use of the port’s potential, but the Kerala government is still having trouble acquiring land for companies close to the Vizhinjam International Seaport. The Tamil Nadu government has approved four additional SIPCOT industrial parks in Tirunelveli district, close across the border and easily accessible from Vizhinjam.

The government has issued an order to purchase more than 2,260 acres of land for Nanguneri’s two parks. Phase 2 of the current SIPCOT park at Gangaikondan is prepared for opening, while a third park is planned for Moolakaraipatti. These parks are all being created to take advantage of Vizhinjam Port’s potential.

In sharp contrast, land talks are still going forward in other parts of Thiruvananthapuram district, and Kerala has only identified roughly 100 acres close to the port through Kinfra thus far.

Speaking on condition of anonymity, a senior Kerala government official stated that Tamil Nadu, which has big land parcels available, is taking advantage of the situation and drawing in investors by providing affordable lease rates, ranging from ₹70 lakh to ₹1 crore for 99 years. According to the official, “this will negatively impact Thiruvananthapuram’s industrial prospects.”

Kerala wants to build a port-based development corridor that runs from Palakkad to Vizhinjam, according to APM Mohammed Hanish, senior secretary of the industries department. “We already have an industrial park in Palakkad, and more are on the way in Tirunelveli and Tuticorin. Thiruvananthapuram is just six hours away from Palakkad. “This corridor should be affected by the port,” he stated.

According to him, the government is searching for land in the district and Kinfra has located 150 acres a few kilometers from Vizhinjam Port.