Synopsis

Kerala's Opposition Leader Pinarayi Vijayan has questioned Adani Group's move to sell a 49% stake in the Vizhinjam port to MSC without state government approval. He alleges this violates the agreement and could lead to MSC monopolizing the port, impacting Kerala's revenue. Chief Minister VD Satheesan is urged to clarify the government's stance and actions regarding this "illegal" share transfer, which Adani Ports touts as a major foreign investment.

Thiruvananthapuram: Leader of Opposition in the Kerala Assembly Pinarayi Vijayan on Thursday questioned how the Adani group could "dare" to enter into an agreement to sell its 49 per cent stake in the Vizhinjam international seaport without the mandatory prior permission of the state government.

Vijayan, at a press conference here, said that according to the agreement between company and the government regarding the port, sale of 25 per cent stake in Adani Vizhinjam Port Private Limited (AVPPL) was permitted subject to prior permission of the state administration.

Also read: Adani Ports says MSC’s terminal arm TiL will invest $1.4 billion for 49% stake in Vizhinjam Port

However, AVPPL, the concessionaire of Vizhinjam port, has entered into an agreement to transfer its 49 per cent shares worth over Rs 13,000 crore to Switzerland-based Mediterranean Shipping Company (MSC), the world's largest shipping and logistics group, without such prior approval.

"How could they dare to do that. The chief minister (VD Satheesan) needs to clarify this as he also holds the charge of the Ports Department. "

"Initiation of the share transfer is illegal and in violation of the agreement with the government. The CM also needs to clarify what steps the government proposes to take in light of this move by Adani," the former chief minister contended.

On Tuesday, Adani Ports and Special Economic Zone (APSEZ) had announced that MSC would acquire a 49 per cent stake in AVPPL for about USD 1.4 billion.

Vijayan said that while some are trying to project it as a huge foreign investment in the state, it is an attempt by Adani to make profit and could lead to monopolising of the port by MSC.

It is a move against the interests of Kerala as it would lead to loss of revenue to the state and the government, he claimed.

Also read: Govt approval mandatory for Adani stake transfer in Vizhinjam port: Kerala CM

"Additionally, if the shipping company MSC takes control of the port, it might turn into their monopoly as it will have a controlling interest in the port following the share transfer," he further claimed.

Vijayan emphasised that there should be no change to the current arrangement with regard to operating of the port and the government should ensure that it does not surrender to the interests of Adani.

The share transfer issue was raised in the Kerala Assembly a day ago and Satheesan had claimed that Adani Ports has not communicated anything to the state government regarding the matter.

He had also said that the government would ensure that the port remains accessible on a non-discriminatory basis to all shipping lines, vessel operators, exporters, importers, freight forwarders and other stakeholders.

APSEZ has described the USD 2.85-billion valuation as the largest foreign private investment in Indian port infrastructure and said the partnership would strengthen Vizhinjam's position as a major transshipment hub in the Indian Ocean.