Vizhinjam share transfer: Kerala Govt toughens stance against Adani Group, registers displeasure

Thiruvananthapuram: Chief Minister V D Satheesan has expressed the state government's strong displeasure over the public announcement regarding Mediterranean Shipping Company (MSC) investing in Adani Vizhinjam Port Private Limited. The Chief Minister's Office (CMO) stated that changes to the shareholding structure can only be implemented with the prior permission of the government. The government will determine its subsequent stance on the matter after thoroughly reviewing the clauses, restrictions and directives of the existing concession agreement.

The announcement that the Mediterranean Shipping Company would invest by acquiring a 49 per cent stake in Adani Vizhinjam Port Private Limited was made without informing or consulting the state government. The CMO press release specified that the state government’s dissatisfaction regarding this move has been formally communicated to the management of Adani Ports and Special Economic Zone Limited (APSEZ).

The Vizhinjam International Seaport became a reality based on a concession agreement signed with the state government. According to this framework, changes to the shareholding structure of the concessionaire are strictly permitted only with government approval. The state government will finalize its future course of action after meticulously examining the applicable clauses, statutory restrictions, and regulations outlined in the contract. The press release further clarified that the government's primary objective is to fully protect the interests of the state while transforming the Vizhinjam port into a globally competitive transhipment hub to realize its maximum potential.

Earlier, the Adani Group had submitted a formal letter to the state government seeking permission for the share transfer. APSEZ officially informed the government on Wednesday regarding its decision to transfer a 49 per cent stake to MSC. The letter cited specific provisions within the port operation agreement signed with the state. The company fast-tracked this formal communication following the rising controversy surrounding the unannounced stake divestment decision.