Tharoor Raises Past Security Concerns Amid Adani's Proposed MSC Stake Transfer

Thiruvananthapuram: Amid controversy over the proposed selling of 49 per cent stakes in the Adani Vizhinjam Port Private Limited (AVPPL), the concessionaire of the port, to the Switzerland based shipping major, MSC, Congress MP Shashi Tharoor on Friday recalled that the project had failed to secure bidders several times under both the UPA and NDA governments because of concerns over the possible involvement of Chinese companies.

The Thiruvananthapuram MP said any stake transfer would require the concurrence of both the central and Kerala governments, as the port is a strategic national asset and national security considerations remain paramount.

"You might remember that before the tender for the project was approved, 3-4 times the bids had failed due to the possibility of involvement of Chinese companies in the process.

"As a result, both the Congress and BJP governments at the Centre had not given approval. So, no final decision should be taken without the concurrence of the governments. That is my view also," he said.

Tharoor said that while no one was against the growth and development of the port, it has to be taken forward in accordance with the concession agreement entered into with the state government.

"Only after both the central and state governments grant their respective clearances can such a sale or transfer of shares be approved. That is the usual legal procedure. That is what both Chief Minister V D Satheesan and opposition leader Pinarayi Vijayan have said," Tharoor told reporters here.

"So, let the process go on," he added.

He further said that the state has a vested interest in the port as it gave the land and it was built with the intention of catering to all shipping companies in the world.

"There should not be a situation in the future that only the ships of MSC can come here. We want it to continue as a multi-shipping line port," he said.

At the same time, he clarified that no one was being opposed and growth of the port is necessary.

"But the growth has to comply with the law and by respecting the stipulations in the concession agreement. That is the only way to move forward. The government will decide after studying all aspects," he said.

State Industries Minister P K Kunhalikutty said that no one should jump to conclusions merely based on controversies.

He said that Satheesan has already made it clear that there was no information from the side of the Adani group regarding the share transfer.

"The CM also said that all aspects regarding the development will be examined, including whether the transaction would be harmful or beneficial to the state," Kunhalikutty told reporters earlier in the day.

Satheesan had on Thursday expressed his administration's displeasure to Adani Ports and Special Economic Zone (APSEZ) over its announcement of transferring 49 per cent shares in Vizhinjam port to Switzerland-based shipping company Mediterranean Shipping Company (MSC) without informing the government.

APSEZ had on Tuesday announced that MSC, the world's largest shipping and logistics group, would acquire a 49 per cent stake in Adani Vizhinjam Port Private Limited (AVPPL) for about USD 1.4 billion.

The CM, in a statement, had said that the government's stand going forward will be decided after examining the applicable conditions, restrictions and instructions in the concession agreement.

He had responded to the Leader of Opposition Pinarayi Vijayan's question on how the Adani group could "dare" to enter into an agreement to sell its 49 per cent stake in the Vizhinjam international seaport without the mandatory prior permission of the state government.

"How could they dare to do that? The chief minister needs to clarify this as he also holds the charge of the Ports Department".

"Initiation of the share transfer is illegal and in violation of the agreement with the government. The CM also needs to clarify what steps the government proposes to take in light of this move by Adani," the former chief minister had contended during a press conference.

AICC General Secretary K C Venugopal had also, on Thursday, said that the Adani Group could not transfer a 49 per cent stake in the company operating the Vizhinjam International Seaport "by keeping the Kerala government in the dark".

The share transfer issue was raised in the Kerala Assembly on Wednesday, and Satheesan had claimed that Adani Ports has not communicated anything to the state government regarding the matter.