Kerala govt refers proposed Vizhinjam stake transfer to empowered panel

Thiruvananthapuram, Jul 8 (PTI) The Kerala cabinet on Wednesday referred a proposal to transfer a 49 per cent stake in the Vizhinjam port project to the Mediterranean Shipping Company to an Empowered Committee headed by the Chief Secretary for detailed examination. The decision comes a week after Adani Ports announced a USD 1.4-billion deal to sell a 49 per cent stake in the Vizhinjam port concessionaire to MSC's terminal arm. When the opposition questioned the Adani Vizhinjam Port Private Ltd (AVPPL) in the Assembly last week, Satheesan had informed that the state government was not informed of the transaction and maintained that any change in the concessionaire's shareholding requires its prior approval under the concession agreement. Addressing a press conference after the Cabinet meeting on Wednesday, Satheesan said the government has received a request seeking its prior approval for the proposed stake transfer. "The cabinet discussed the matter and decided to refer it to the Empowered Committee headed by the Chief Secretary. The committee will examine the concession agreement, Kerala's interests and the legal aspects before making its recommendations," he said. He said the cabinet would consider the committee's recommendations before taking a final decision. "The state government will not take any decision that is against Kerala's interests," the chief minister said. Responding to allegations that the Congress-led UDF government had permitted Adani Ports to transfer its stake to MSC, Satheesan denied any wrongdoing. "What mistake has this government made in relation to the proposed transfer of shares to the Mediterranean Shipping Company? That is the question I am putting to the media. What exactly has the government done wrong? As I had stated in the Assembly that day, the government was not aware of the matter," he said. When asked further, the chief minister urged the media to verify facts before reporting the issue. "Whenever an issue arises, both the government and the media have a responsibility to study it carefully before commenting on it. Around 60 per cent of media reports claimed that the share transfer had already taken place. No share transfer has taken place," he said. Satheesan said the concession agreement clearly sets out the procedure for any transfer of shares. "The state government is the owner of the port, while the company only has the right to develop and operate it under the concession agreement. Under Clause 5.3 of the agreement, no transfer of more than 25 per cent of the company's shares can take place without the state government's prior approval." The chief minister said his statement in the Assembly was based on the fact that the government had not received any formal request at that time. "What I said in the Assembly was that the government had not officially been informed because no request seeking prior approval had been received," he said. Satheesan claimed that discussions between Adani Ports and MSC had been going on for about a year and alleged that the previous Left government was aware of them. He said a report published by the CPI(M) mouthpiece on June 5, 2026, had stated that MSC was coming to Vizhinjam, while the current managing director assumed charge only on June 11 after the UDF government took office. He also said MSC representatives had attended the Vizhinjam Conclave organised by the previous LDF government in 2025. Referring to another report published by the CPI(M) mouthpiece on July 1, he said it had described MSC's proposed Rs 13,000-crore investment and acquisition of a 49 per cent stake as a success of the previous LDF government's long-term vision. Satheesan alleged that "baseless allegations" were now being made against the Congress-led UDF government. He said the company formally sought the state's approval only after the government conveyed its displeasure over the comapany's move to transfer the shares without prior information. Rejecting Opposition leader Pinarayi Vijayan's allegation that MSC's entry would create a monopoly at the port, Satheesan said the claim was incorrect. "Clause 5.8.1 of the concession agreement specifically states that the port must remain a common-user facility and gives the government the power to intervene if necessary. Therefore, no single company can establish a monopoly over the port's operations," he said. Taking a dig at Vijayan, the chief minister said those making such allegations should first read the concession agreement in full before drawing conclusions. PTI TGB KH