The Kerala government has clarified that it has not approved the proposed transfer of a 49 per cent stake in Adani Vizhinjam Port Private Ltd (AVPPL), the concessionaire developing the Vizhinjam International Seaport, to Mediterranean Shipping Company (MSC). The proposal is currently being examined, and the state government said a decision will be taken only after ensuring that Kerala's interests are fully protected. 
Speaking after the Cabinet meeting, Kerala Chief Minister V D Satheesan said an Empowered Committee headed by the Chief Secretary has been formed to study the proposal. He said the government has not granted any approval so far and that every aspect of the proposed stake transfer will be examined before a final decision is made. According to him, the state will only approve a proposal that safeguards Kerala's long-term interests. 
Responding to the CPI(M)'s allegation that the proposed transaction was part of a major deal, the Chief Minister rejected the charge and said the government had not taken any decision on the matter. He stated that the allegations were premature since the proposal is still under examination. 
The Chief Minister also criticised the previous LDF government over changes made to the Vizhinjam port concession agreement after the project failed to meet its original completion schedule. He alleged that the earlier administration amended the agreement by extending the concession period from 40 years to 45 years after granting a five-year extension for project completion. 
According to him, the previous government also waived the penalty that Adani Ports was required to pay for the delay. He claimed that under the concession agreement, the developer was liable to pay a penalty of INR 12 lakh per day for delays beyond the scheduled completion period. Based on a delay of five years, or around 1,825 days, he alleged that the total penalty amounted to approximately INR 219 crore, which was waived in two stages by the previous government. 
When asked about the justification that floods and the COVID-19 pandemic had affected project execution, the Chief Minister acknowledged that these reasons had been cited for waiving the compensation. However, he questioned the decision, arguing that the disruptions lasted only for a limited period, whereas the concessionaire received relief covering a delay of five years. 
The proposed transfer of Adani's 49 per cent stake to MSC has triggered political debate in Kerala, with the CPI(M) raising concerns that the transaction could result in MSC gaining a dominant position at the strategically important port. Responding to these concerns, the Chief Minister said the government would assess the proposal only from Kerala's perspective and would ensure that the state's interests remain protected. 
He also referred to provisions in the concession agreement that, according to him, prevent monopolistic control. He said Clause 5.8 of the agreement requires the port to function as a common user facility and contains safeguards against the creation of a monopoly. He alleged that the opposition had raised concerns without fully examining the agreement. 
The Chief Minister reiterated that no final approval has been granted for the stake transfer and that the government will carefully study whether the proposed transaction could adversely affect Kerala before taking any decision. 
He also dismissed allegations made by CPI(M) Kannur district secretary K K Ragesh that IAS officer Divya S Iyer was transferred from the Ports Department in connection with the proposed transaction. Referring to differing opinions within the CPI(M), he claimed that even senior leaders of the party had advised against making unnecessary allegations regarding the issue. 
Further criticising the opposition, the Chief Minister referred to reported remarks by former Law Minister P Rajeev, claiming that the former minister had earlier indicated there was no issue with transferring the stake. He questioned the opposition's current position and suggested that it had changed its stand on the matter. 
The Vizhinjam International Seaport project, being developed by Adani Ports under a public-private partnership with the Kerala government, is one of India's key deep-water transshipment ports. The project has witnessed multiple deadline extensions over the years due to protests, natural disasters, the COVID-19 pandemic and other implementation challenges. The proposed stake transfer to MSC remains subject to approvals under the concession agreement and applicable regulatory processes. 
Source PTI