Kerala Says Not Consulted on Adani-MSC's Rs 13,000 Crore Vizhinjam Port Stake Deal

The Kerala government has stated that it was not consulted regarding the acquisition of a 49 percent stake in Adani Vizhinjam Ports Private Limited (AVPPL) by global shipping giant Mediterranean Shipping Company (MSC). The deal, valued at Rs 13,000 crore, was announced on Tuesday by Adani Ports and Special Economic Zone Limited, which described it as the single largest foreign private investment in Indian port infrastructure.

AVPPL is the concessionaire responsible for building, financing, and operating the Vizhinjam International Container Transshipment Port for 40 years under a public-private partnership (PPP) model. The port, built at a cost of around Rs 8,900 crore, is operated by the Adani Group, with the Kerala government holding a majority stake in the project.

Kerala's Chief Minister informed the state Assembly on Wednesday that the Adani Group had not communicated with the state government about the stake sale. He noted that the concession agreement requires prior approval from the state government for any change in ownership. 'Selling 49 percent stake means there is an ownership change, which is not possible without the consent of the state government,' he said.

The announcement has raised questions about the transparency of the deal and adherence to contractual obligations. The state government has indicated that it will examine the matter and take appropriate action to safeguard its interests.