Don’t drag Vizhinjam port project into unnecessary controversies: CPI(M) leader Jayarajan

Kannur (Kerala), Jul 9 (PTI) Senior CPI(M) leader E P Jayarajan on Thursday urged the Kerala government to ensure that the Vizhinjam International Seaport project is completed in accordance with the concession agreement, while cautioning against dragging it into unnecessary controversy. The remarks come in the wake of Adani Ports and Special Economic Zone Ltd announcing that Mediterranean Shipping Company would acquire a 49 per cent stake in Adani Vizhinjam Port Private Limited for about USD 1.4 billion. Speaking to reporters, Jayarajan said the state wanted the port to function efficiently and that the LDF, which had played a significant role in the project, shared the same objective. “The state government must show a sincere commitment to expediting the completion of the Vizhinjam Port project in accordance with the signed agreement. Effective intervention is required from the government’s side to protect the interests of the state without deviating from the terms of the contract,” he said. He said dragging the Vizhinjam project into controversy and stalling its progress would not benefit Kerala. “Ministers, in particular, should pay close attention to this, as Kerala’s public interest must be protected,” he said. Asked about allegations of corruption surrounding the project, Jayarajan said any such claims should be examined through the appropriate legal mechanisms. Recently, CPI(M) leaders had alleged major corruption linked to the project. “If anyone has concerns or claims that corruption has taken place, let them raise it. We have enough mechanisms here, including ministers and the Vigilance department, to investigate such matters. Let them investigate,” he said, adding that he had not personally raised any allegation of corruption. Former finance minister K N Balagopal questioned the proposed transfer of a 49 per cent stake in Adani Vizhinjam Port Private Limited to MSC, saying the concession agreement required the Kerala government’s prior approval for such a transaction. Recalling the LDF government’s role in the project, Balagopal said the state had invested over Rs 5,000 crore of the nearly Rs 8,000-crore project cost, while the concessionaire had invested around Rs 2,400 crore. “According to the provisions of the concession agreement, if shares are to be transferred to another entity, prior approval of the authority is required. The authority means the state government. This matter has never formally come before the state government,” he told reporters. Balagopal questioned how the company had approached market regulator SEBI before obtaining the state’s approval. “How did they get the confidence to approach SEBI? They must have received some assurance in this regard beforehand, which gave them the confidence,” he alleged. He expressed concern over reports that global investment firm BlackRock would become a major shareholder through MSC, saying the government had not provided adequate clarity on the implications of such a move. “There has been a total lack of clarity regarding this. There has been unwarranted haste in the matter,” he alleged. Former finance minister Thomas Isaac also questioned the legality of the proposed transaction, citing Clause 5.9 of the concession agreement. According to Isaac, the agreement bars such a transfer if the incoming entity holds more than a 25 per cent stake in another port within a 250-km radius. Claiming that MSC has investments in Thoothukudi port, Isaac asked, “How is the Kerala government going to grant permission for a company like this to acquire a 49 per cent stake in Adani Vizhinjam Port?” He questioned whether the Empowered Committee or the Kerala Cabinet had discussed the proposal before the company initiated the process. “This is not a technical matter; it is a policy matter in which the political leadership must take a decision. Therefore, the Chief Minister must be ready to provide Kerala with a clear reply on this issue,” Isaac told reporters. PTI TBA SSK