Adani-MSC Vizhinjam Deal: Kerala Govt Seeks Clarity in Fresh Letter

The Adani Ports and Special Economic Zone Limited (APSEZ) has sent a second letter to the Kerala government to clarify its proposed sale of a 49% stake in the Vizhinjam port to Mediterranean Shipping Company (MSC), based in Switzerland.

The state government remains cautious as Adani Vizhinjam Port Private Limited (AVPPL), the port's concessionaire, has not yet shared a copy of its agreement with MSC. Under the original concession agreement, the government granted mortgage rights over the port site and its assets to AVPPL for the concession period. It is unclear whether MSC, as a new partner, will also receive these mortgage rights, according to a bureaucrat.

An empowered committee is already overseeing decisions related to the Vizhinjam International Seaport. The government is also considering forming a new expert committee from various sectors to study the deal's impact on the state.

In its second letter, APSEZ assured the government that MSC would not monopolise the port. It stated that the port will remain a common-user facility accessible to all, citing similar arrangements at other Indian ports. AVPPL also reaffirmed its commitment to the 'Mission Samudra' project, a Kerala government initiative to boost maritime development.

However, questions have arisen about whether the deal could give MSC an unfair advantage by allowing its subsidiaries to handle both seaside and landside logistics, potentially leading to dominance by a global shipping line. The state will examine these issues before granting final approval. Government sources noted that a brief report in a northern daily a month ago was the first information available to the state about the deal.

The concession agreement requires the state government's prior approval for any ownership change. Under the proposed deal, MSC, through its container terminal arm TiL, will acquire a 49% stake in the Vizhinjam port company for $1.397 billion (approximately ₹13,220 crore).