Vizhinjam International Seaport. Photo: PTI
Thiruvananthapuram: The Kerala government has dissented over the announcement that the Mediterranean Shipping Company (MSC) will acquire a 49% stake in Adani Vizhinjam Port Private Limited (AVPPL), saying the decision was made without informing or consulting the state.
In a statement issued on Thursday, the Chief Minister’s Office said Chief Minister V D Satheesan conveyed the government’s displeasure to the management of Adani Ports and Special Economic Zone Ltd. (APSEZ).
The government said the Vizhinjam International Seaport, one of Kerala’s long-pending dream projects, became a reality based on the concession agreement signed between the state and the concessionaire.
According to the government, any change in the shareholding pattern of the concessionaire can be made only with the approval of the state government. It added that the government will examine the relevant provisions of the concession agreement, along with other applicable conditions and directions, before deciding on its next course of action.
The statement further said the government’s priority is to fully protect Kerala’s interests while ensuring that Vizhinjam Port achieves its full potential as a globally competitive transhipment hub.
Earlier on Wednesday, Satheesan said the government had no formal intimation about the move. “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 while replying to a submission moved by Opposition Leader Pinarayi Vijayan.
He said that Clause 5(3) of the Vizhinjam concessionaire agreement clearly stated that the concessionaire (AVVPL) should not undertake or permit any change in ownership without the prior approval of the Kerala government.
Further, the CM said that according to the Companies Act, the sale of 25 per cent of a company’s equity was enough to call it a change of ownership. “Ownership change cannot be done without the approval of the Kerala government,” the CM said, and added: “We will examine it when the proposal comes before us.”
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