The Kerala Cabinet has decided to constitute an Empowered Committee, headed by the Chief Secretary, to examine whether the Adani Group’s proposal to divest its 49 per cent stake in Vizhinjam International Seaport is in the State’s interest.
Announcing the decision after the Cabinet meeting on Wednesday, Chief Minister V.D. Satheesan said the government would take a considered view on the proposal and would not approve any move that could adversely affect Kerala’s interests.
The Chief Minister said the State government was not informed in advance about the proposed stake transfer and became aware of the development only after media reports surfaced. It was subsequently learnt that the Adani Group had been holding discussions with the MSC Group regarding the proposed transaction for nearly a year.
According to Satheesan, the State government expressed its displeasure to the Adani Group on the same day the company informed the Securities and Exchange Board of India (SEBI) about the proposed deal. Following this, the company formally sought the State government’s prior approval for the share transfer, as stipulated under the concession agreement governing the port.
Responding to criticism from Opposition leader Pinarayi Vijayan, the Chief Minister said the allegations were made without a proper reading of the concession agreement. He rejected claims that the proposed transaction would enable the MSC Group to establish a monopoly at Vizhinjam, noting that the agreement clearly requires the port to operate as a common-user facility, ensuring non-discriminatory access to all users.
Satheesan further clarified that there has been no violation of the concession agreement, as no share transfer has taken place so far. He added that even if the State government grants its approval, the transaction can proceed only after obtaining the necessary clearances from the Union Ministry of Home Affairs and the Ministry of Ports, Shipping and Waterways.
The Empowered Committee is expected to examine the legal, financial and strategic implications of the proposed stake sale before submitting its recommendations to the State government for a final decision.