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The Kerala government has referred a proposal to transfer a 49% stake in the Vizhinjam International Seaport project to Mediterranean Shipping Company (MSC) to an Empowered Committee for detailed review. The panel will examine the concession agreement, legal provisions and the state's interests before submitting its recommendations to the Cabinet. The move follows Adani Ports' request for prior approval, with the government stating that no decision on the proposed stake transfer will be taken until the review is completed.
The Kerala Cabinet has referred a proposal to transfer a 49% stake in the Vizhinjam International Seaport project to Mediterranean Shipping Company (MSC) to an Empowered Committee headed by the Chief Secretary for detailed examination. The decision was taken in the past week after the state government received a request seeking its prior approval for the proposed stake transfer in the Adani-operated port project.
The proposed transaction relates to Adani Vizhinjam Port Private Limited, the concessionaire responsible for developing and operating the deep-water transshipment port at Vizhinjam near Thiruvananthapuram. Earlier, Adani Ports announced that MSC would acquire a 49% stake in the project through a deal valued at around USD 1.4 billion, subject to regulatory approvals and contractual conditions.
Following discussions, the Cabinet decided that the proposal should undergo a comprehensive review before any approval is granted. Chief Minister V. D. Satheesan said the Empowered Committee would examine the concession agreement, assess the legal implications and evaluate whether the proposed transaction safeguards Kerala's interests. The committee will submit its recommendations to the Cabinet, which will then take the final decision. He also reiterated that the state government would not approve any proposal that compromises Kerala's interests.
The review follows the state government's earlier clarification that any change in the ownership or shareholding structure of the concessionaire requires prior approval under the concession agreement governing the project. The government had previously stated that it had not received a formal request at the time reports of the proposed transaction first emerged and maintained that approval remains mandatory before any transfer can proceed.
Vizhinjam International Seaport is one of India's largest port infrastructure projects and has been developed as a deep-water transshipment terminal under a public-private partnership between the Kerala government and Adani Ports. The facility is strategically located close to major international shipping routes and is intended to strengthen India's maritime infrastructure by reducing dependence on foreign transshipment hubs.
The Cabinet's decision does not approve or reject the proposed stake transfer but initiates a formal review process. The Empowered Committee's findings on contractual obligations, legal provisions and the implications for the state's interests will form the basis for the Cabinet's final decision on the proposed transaction. Until then, the request for the stake transfer will remain under examination by the state government.
Source: PTI
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