Kerala Forms Expert Panel to Review Adani's Stake Sale in Vizhinjam Port to MSC
The Kerala Cabinet on Wednesday announced the formation of an Empowered Committee led by the Chief Secretary to study the proposed transfer of a 49% stake in Adani Vizhinjam Port Private Limited (AVPPL) — the concessionaire and operator of the Vizhinjam International Seaport — to Switzerland-based Mediterranean Shipping Company (MSC) Group. The committee will assess whether the deal aligns with the state's interests.
Addressing the media after the Cabinet meeting, Chief Minister V.D. Satheesan stated that the government would not approve any decision detrimental to Kerala. He also responded to criticism from the opposition Left Democratic Front (LDF), noting that the CPI(M)-affiliated newspaper Deshabhimani first reported the stake-sale plans on June 5, 2024, before the current government's appointee took charge as Managing Director of the port on June 11.
Satheesan alleged that the LDF government was aware of the proposed deal but was now shifting blame. He reiterated that the United Democratic Front (UDF) government learned of the share transfer through media reports, despite Adani Group having held discussions with MSC for a year. The government expressed displeasure to Adani after the group informed the Securities and Exchange Board of India (SEBI) about the deal, prompting Adani to seek formal permission.
Responding to Leader of the Opposition Pinarayi Vijayan's claims in the Assembly, Satheesan argued that the port's concession agreement mandates a common user facility, preventing any monopoly by MSC. He stressed that no share transfer has occurred yet, and any such transfer would require clearance from both the state government and the Union Home and Shipping ministries.
On criticism about holding multiple portfolios (Finance, Ports, Law), Satheesan compared himself to Vijayan, who held 29 portfolios. He stated that the Congress party insisted he take Finance, and he chose Ports because Vizhinjam is his 'dream project' and keeping it under the Chief Minister's Office ensures better coordination.
