Vizhinjam stake row: Kerala CM defends UDF’s handling, says LoP comments ignored facts and agreement

Thiruvananthapuram, Kerala: Kerala Chief Minister VD Satheesan on Wednesday defended UDF-led state government's handling of the proposed stake transfer at Vizhinjam International Seaport, asserting that no wrongdoing had occurred and that the transaction had not been approved or completed.

Addressing a press conference, Satheesan said the government had not granted permission for Adani Group to transfer stake in the port to Mediterranean Shipping Company (MSC). He also criticised those who alleged irregularities in the matter, saying they should "hang their heads in shame".

The Chief Minister said Vizhinjam International Seaport is wholly owned by the Kerala government and that the concession agreement makes prior government approval mandatory for any transfer of shares.

He said the agreement specifically requires the state's approval if more than 25 per cent of the shares are proposed to be transferred. The government would examine the proposal only after receiving a formal application from the company, he added.

According to Satheesan, no such transfer has been approved so far. He also claimed that nearly 60 per cent of media reports had incorrectly suggested that the share transfer had already taken place.

The Chief Minister said discussions between Adani Ports and MSC had been under way for almost a year. Referring to a report published in the CPM mouthpiece Deshabhimani on June 5, 2026, he said the proposed transaction had already been in the public domain before the current Managing Director assumed office.

Reiterating that no stake transfer has taken place, Satheesan said the concession agreement does not allow any transfer without the Kerala government's prior approval.

He said the discussions between Adani Ports and MSC had continued for the past year and argued that the previous CPM-led LDF government was aware of it. He pointed to Deshabhimani's earlier report, which, according to him, had presented MSC's proposed involvement as a result of the previous government's long-term vision.

Satheesan also said senior MSC representatives had attended the Vizhinjam Conclave and that the then LDF government had described the company's interest in the port as a significant achievement.

Rejecting claims that the proposed transaction would create a monopoly, the Chief Minister said the concession agreement includes "common user facility" provisions that prevent any single entity from monopolising operations at the port.

He also criticised the Leader of the Opposition for raising the issue in the Assembly without reading the concession agreement.

Empowered committee reviewing proposal

Satheesan said the company had approached the Securities and Exchange Board of India (SEBI) regarding the proposed transaction. Since prior approval from the Kerala government is mandatory, the state conveyed its dissatisfaction over the company's move. Following this, the company submitted a formal request seeking the required approval.

He said an empowered committee headed by the Chief Secretary is examining the proposal in detail to safeguard Kerala's interests.

The Chief Minister added that any final approval would also require security clearances from the Union Ministry of Home Affairs and the Ministry of Ports, Shipping and Waterways, given the strategic importance of the port.

The state government will take a final decision only after receiving the committee's report and the Centre's approvals, he said. The proposal will be assessed to determine whether the stake transfer would benefit or adversely affect the future of Vizhinjam Port before any decision is taken.