Kerala Govt Not Consulted About Rs 13,000 Crore Adani -MSC Vizhinjam Stake Deal, Says CM Satheesan

THIRUVANANTHAPURAM: Kerala Chief Minister V D Satheesan on Wednesday said that the state government was not consulted about global shipping giant Mediterranean Shipping Company (MSC) acquiring a 49 per cent stake in Adani Vizhinjam Ports Private Limited (AVPPL).

The AVPPL is the concessionaire responsible for building, financing and operating the Vizhinjam International Container Transhipment Port for 40 years under the public-private partnership (PPP) model.

Satheesan said Adani Ports cannot transfer its shares in the Vizhinjam International Seaport without prior approval from the state government. Replying to a question in the Assembly, the chief minister noted that while there have been media reports about the proposed stake transfer, the company has not approached the government for approval.

"As per the agreement, they cannot transfer these shares without the government's consent. Approval from the state is mandatory, and in certain cases, clearance from the Central Government is also required," he said. He added that no such request has been received by the government so far.

The chief minister’s statement comes shortly after Adani Ports and Special Economic Zone (APSEZ) on Tuesday announced about MSC acquiring shares of the Vizhinjam port. The Switzerland-based Mediterranean Shipping Company (MSC) Group, the world’s largest container shipping company, will acquire a 49 percent stake in the Vizhinjam International Seaport in Kerala for $1.397 billion (around Rs 13,220 crore).

In its statement, APSEZ said MSC will invest in its container terminal operating and investing arm, Terminal Investment Limited (TiL). APSEZ and TiL have signed an agreement under which MSC Group will invest for a 49 percent interest in Adani Vizhinjam Port Private Ltd, the concessionaire for the Vizhinjam port, cementing its position as a dominant transshipment gateway in the Indian Ocean region.

The strategic collaboration represents the single largest foreign private investment in Indian port infrastructure.

Deal could create a monopoly and raise national security concerns, warns opposition leader Pinarayi Vijayan

Opposition Leader in the Kerala Assembly, Pinarayi Vijayan, urged the state government to closely examine the proposed acquisition of a 49 percent stake in Adani Vizhinjam Port Pvt Ltd by MSC. He cautioned that the deal could create a monopoly and raise national security concerns.

Speaking on the issue in the Kerala Assembly, Vijayan welcomed the chief minister's clarification that the state had not granted any approval for the proposed transaction.

Vijayan argued that the concession agreement governing the Vizhinjam International Seaport requires any such proposal to be evaluated from the perspective of national security and public interest. The opposition leader also raised concerns about the commercial implications of the proposed deal, pointing out that MSC is not just a financial investor but one of the world’s largest shipping and logistics companies. “If the shipping company also becomes a joint owner with the concessionaire, which is the port operator, then a new form of monopoly will be created here.”