The decision was based on the recommendation of the high level panel on the project, headed by the state Chief Secretary in the wake of negotiations with Welspun Infratech failing over the issue of state grants for the mega project.
Chief Minister Oommen Chandy, during his weekly cabinet briefing, said the Engineering, Procurement and Construction (EPC) tender for the project would be floated afresh.
Vishinjam has been a dream project of Kerala, waiting to take off for long. Often in the past, the project had run into rough waters for one reason or other after progressing into the advance stages.
Located in the capital district in south Kerala, Vizhinjam coast is said to have all the natural advantages for developing into a major deep sea project.