Adani-MSC Vizhinjam deal: Kerala refers stake transfer proposal to empowered committee
The committee will examine the concession agreement, Kerala's interests and the legal aspects of the proposed transaction before making recommendations to the cabinet
- Jul 8, 2026,
- Updated Jul 8, 2026 1:42 PM IST
A week after Adani Ports announced a $1.4-billion deal with Mediterranean Shipping Company, a global shipping giant, the Kerala government has sent the proposal to an Empowered Committee for a detailed examination.
On Wednesday, the Kerala cabinet referred the proposal to transfer a 49% stake in the Vizhinjam port project to MSC to an Empowered Committee headed by the Chief Secretary for a detailed examination.
The committee will examine the concession agreement, Kerala's interests and the legal aspects of the proposed transaction before making recommendations to the cabinet, Chief Minister V D Satheesan said after the cabinet meeting.
"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.
Don't Miss | MSC Deal Lifts Adani Ports As Brokerages See Strong Upside Beyond ₹2,000 Per Share
Satheesan said the cabinet would take a final decision only after considering the panel's report, adding, "The state government will not take any decision that is against Kerala's interests."
Government Says Approval Sought Only Now
The decision comes days after Adani Ports announced an agreement to sell a 49% stake in Adani Vizhinjam Port Private Ltd (AVPPL), the concessionaire operating the port, to MSC's terminal arm.
The chief minister said the government has now received a request seeking its prior approval for the proposed transfer.
Last week, responding to questions in the Assembly, Satheesan had said the government had not been informed of the transaction and maintained that any change in the concessionaire's shareholding requires prior approval under the concession agreement.
Clarifying his earlier remarks, he said, "What I said in the Assembly was that the government had not officially been informed because no request seeking prior approval had been received."
'No Share Transfer Has Taken Place'
Rejecting criticism over the proposed transaction, Satheesan said the government had committed no 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.
He also dismissed reports suggesting the transaction had already been completed.
"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.
Citing the concession agreement, Satheesan said the state remains the owner of the port while the concessionaire only has the right to develop and operate it.
"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," he said.
CM Targets Opposition Over Allegations
Satheesan claimed discussions between Adani Ports and MSC had been underway for nearly a year and alleged that the previous Left government was aware of them.
He cited reports published by the CPI(M) mouthpiece on June 5 and July 1, saying they had referred to MSC's proposed entry into Vizhinjam, including a planned Rs 13,000-crore investment and acquisition of a 49% stake, as part of the previous LDF government's long-term vision.
He also noted that MSC representatives attended the Vizhinjam Conclave organised by the previous LDF government in 2025.
The chief minister alleged that the company formally sought the state's approval only after the government expressed its displeasure over the proposed share transfer without prior intimation.
Rejecting Opposition leader Pinarayi Vijayan's allegation that MSC's entry would create a monopoly, Satheesan said the concession agreement prevents such a scenario.
"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.
(With inputs from PTI)
A week after Adani Ports announced a $1.4-billion deal with Mediterranean Shipping Company, a global shipping giant, the Kerala government has sent the proposal to an Empowered Committee for a detailed examination.
On Wednesday, the Kerala cabinet referred the proposal to transfer a 49% stake in the Vizhinjam port project to MSC to an Empowered Committee headed by the Chief Secretary for a detailed examination.
The committee will examine the concession agreement, Kerala's interests and the legal aspects of the proposed transaction before making recommendations to the cabinet, Chief Minister V D Satheesan said after the cabinet meeting.
"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.
Don't Miss | MSC Deal Lifts Adani Ports As Brokerages See Strong Upside Beyond ₹2,000 Per Share
Satheesan said the cabinet would take a final decision only after considering the panel's report, adding, "The state government will not take any decision that is against Kerala's interests."
Government Says Approval Sought Only Now
The decision comes days after Adani Ports announced an agreement to sell a 49% stake in Adani Vizhinjam Port Private Ltd (AVPPL), the concessionaire operating the port, to MSC's terminal arm.
The chief minister said the government has now received a request seeking its prior approval for the proposed transfer.
Last week, responding to questions in the Assembly, Satheesan had said the government had not been informed of the transaction and maintained that any change in the concessionaire's shareholding requires prior approval under the concession agreement.
Clarifying his earlier remarks, he said, "What I said in the Assembly was that the government had not officially been informed because no request seeking prior approval had been received."
'No Share Transfer Has Taken Place'
Rejecting criticism over the proposed transaction, Satheesan said the government had committed no 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.
He also dismissed reports suggesting the transaction had already been completed.
"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.
Citing the concession agreement, Satheesan said the state remains the owner of the port while the concessionaire only has the right to develop and operate it.
"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," he said.
CM Targets Opposition Over Allegations
Satheesan claimed discussions between Adani Ports and MSC had been underway for nearly a year and alleged that the previous Left government was aware of them.
He cited reports published by the CPI(M) mouthpiece on June 5 and July 1, saying they had referred to MSC's proposed entry into Vizhinjam, including a planned Rs 13,000-crore investment and acquisition of a 49% stake, as part of the previous LDF government's long-term vision.
He also noted that MSC representatives attended the Vizhinjam Conclave organised by the previous LDF government in 2025.
The chief minister alleged that the company formally sought the state's approval only after the government expressed its displeasure over the proposed share transfer without prior intimation.
Rejecting Opposition leader Pinarayi Vijayan's allegation that MSC's entry would create a monopoly, Satheesan said the concession agreement prevents such a scenario.
"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.
(With inputs from PTI)