Kerala Chief Minister V.D. Satheesan has confirmed that Adani Vizhinjam Port Private Limited (AVPPL), the company operating Vizhinjam International Seaport, submitted an application seeking the state government’s prior approval for a proposed transfer of its 49% shareholding.
In a written reply to an unstarred question in the Kerala Assembly, the Chief Minister said the company had approached the government in accordance with the port concession agreement. The agreement requires prior state approval for ownership changes arising from share transfers.
The proposed transaction involves the sale of a 49% stake in AVPPL to Switzerland-based Mediterranean Shipping Company (MSC), through its port operating arm, Terminal Investment Limited. The deal is valued at approximately US$1.4 billion (around ₹13,000 crore).
The application is being examined by a high-level committee headed by the Chief Secretary . According to the Chief Minister, the committee is reviewing the proposed transfer, the information submitted by the company and other relevant provisions of the concession agreement.
Further action will be taken after the committee submits its recommendations and report, following a comprehensive examination of the proposal.
The development follows a controversy over whether the Adani Group had sought the mandatory approval before proceeding with the proposed stake transfer. Earlier, the state government had said it learned of the transaction through media reports, prompting questions about compliance with the concession agreement.
The proposed investment has also raised questions about the implications of MSC’s involvement in the port’s ownership and operations, given its significant position in the global container shipping industry.
The transaction remains subject to the required regulatory approvals. The state government’s review will determine the next steps under the concession agreement governing the development and operation of Vizhinjam port.
Vizhinjam is an important deepwater transshipment port on Kerala’s southern coast, positioned to handle international container traffic and compete for cargo moving through major regional maritime routes.