Kerala Government: State Approval Mandatory for Adani-MSC Vizhinjam Port Stake Transfer
The Kerala government on Wednesday clarified that the transfer of a 49% stake in the Vizhinjam International Seaport from Adani Ports and Special Economic Zone Limited (APSEZ) to the Mediterranean Shipping Company (MSC) Group requires the state government's approval. Chief Minister V.D. Satheesan made the statement in response to a question during Question Hour in the Kerala Assembly.
The clarification came a day after APSEZ announced that MSC, through its container terminal arm Terminal Investment Limited (TiL), would acquire the stake for $1.397 billion (approximately ₹13,220 crore). The CM stated that Adani Ports has not yet sought the necessary approval from the state government for the share transfer. In certain cases, the Central government's approval is also required, he added.
According to APSEZ, the transaction is subject to customary approvals, including regulatory ones. The Kerala government's stance adds a layer of oversight to the deal, which is part of the larger development of the Vizhinjam port, a strategic infrastructure project on India's southern coast.
The Vizhinjam port is being developed as a major transshipment hub, and the involvement of global shipping giant MSC is seen as a significant boost. However, the state government's insistence on its approval highlights the federal structure and the need for compliance with local regulations.
