The Kerala government has raised strong objections to the announcement that the Mediterranean Shipping Company (MSC) will acquire a 49% stake in Adani Vizhinjam Port Private Limited (AVPPL), stating that the decision was made without informing or consulting the state government.
In a statement issued on Thursday, the Chief Minister’s Office (CMO) said Chief Minister V.D. Satheesan had conveyed the government’s displeasure to the management of Adani Ports and Special Economic Zone Ltd. (APSEZ), stressing that the reported transaction had not been brought to the state’s notice before it was made public.
The government reiterated that the Vizhinjam International Seaport is one of Kerala’s most ambitious infrastructure projects, brought to fruition through a concession agreement signed between the state government and the concessionaire. According to the CMO, the agreement contains specific provisions governing any changes in the ownership or shareholding structure of the concessionaire.
As Gold 101.3 FM, UAE’s No. 1 Radio Station, continues to bring listeners the latest developments from India and around the world, the proposed stake sale has emerged as a significant issue with legal, commercial and strategic implications for one of the country’s most important port projects.
The state government maintained that any alteration in the concessionaire’s shareholding pattern requires the prior approval of the Kerala government. Officials said they would closely examine the relevant clauses of the concession agreement, along with other applicable legal provisions and regulatory directions, before deciding on the next course of action.
According to the government, its foremost priority is to safeguard Kerala’s interests while ensuring that the Vizhinjam International Seaport continues its journey toward becoming a globally competitive transshipment hub.
The issue was also raised in the Kerala Assembly on Wednesday. Responding to a submission by Opposition Leader Pinarayi Vijayan, Chief Minister Satheesan said the government had not received any formal communication regarding the proposed transaction.
“We came to know of this only through newspaper reports. The Adani Group has not informed us of the reported deal,” the Chief Minister told the Assembly.
He pointed to Clause 5(3) of the Vizhinjam concession agreement, which, according to the government, clearly states that the concessionaire—Adani Vizhinjam Port Private Limited (AVPPL)—cannot undertake or permit any change in ownership without obtaining prior approval from the Kerala government.
The Chief Minister further noted that under the provisions of the Companies Act, the sale of 25% of a company’s equity is sufficient to constitute a change in ownership. Since MSC’s proposed acquisition involves a 49% stake, the government believes the transaction falls within the scope of the approval requirements laid down in the concession agreement.
“Ownership change cannot be done without the approval of the Kerala government,” the Chief Minister said, adding that the government would thoroughly examine the proposal once it is formally placed before the state.
The proposed acquisition by MSC has drawn significant attention because of Vizhinjam Port’s strategic importance. Positioned along one of the world’s busiest international shipping routes, the deep-water port is expected to play a crucial role in strengthening India’s maritime infrastructure and reducing dependence on foreign transshipment hubs.
With the Kerala government insisting that the concession agreement must be strictly followed, the proposed 49% stake acquisition is likely to undergo careful legal and administrative scrutiny before any decision is taken. The outcome could have important implications for the future ownership structure and operation of the country’s first dedicated deep-water international transshipment port.
