'Significant news for Vizhinjam': Shashi Tharoor welcomes Adani Ports-MSC deal, but seeks due diligence

Congress MP Shashi Tharoor on Tuesday welcomed the proposed investment by Switzerland-based MSC Group in Kerala's Vizhinjam port, calling it "significant news" for the state's ambitions of becoming a global transshipment hub. He, however, stressed that a transaction of such scale requires scrutiny.

MSC's Terminal Investment Ltd will acquire a 49% stake in Adani Vizhinjam Port Private Ltd (AVPPL).

Tharoor said the development could boost cargo volumes, expand capacity and create jobs in Kerala.

"Significant news for Vizhinjam: Adani Ports has signed a $2.85 bn agreement with MSC's Terminal Investment Ltd, the world's largest container line, for a 49% stake in AVPPL, the single largest foreign private investment in Indian port infrastructure," Tharoor said in a post on X.

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Highlighting the port's rapid growth, he noted that "Vizhinjam Port crossed 2 million TEUs in just 18 months; this should accelerate Phase 2 and cement its place as a global transshipment hub."

"As MP for this port constituency," Tharoor added, the deal means "more cargo, more capacity, more jobs for Kerala."

However, the Congress leader cautioned that the transaction should not proceed without adequate review. "But a transaction of this scale involving a strategic asset deserves due diligence, not just applause," he said.

Tharoor pointed out that under the concession agreement governing the port, any ownership change exceeding 25% requires prior approval from the Kerala government.

"That approval can only come after a review that ensures standard national-security/critical-infra checks," he said, noting that the port is built largely on state government land and is located on a major global shipping route.

The Congress MP also emphasised the need to preserve Vizhinjam's status as a common-user facility. He said it was important that Vizhinjam stayed a non-discriminatory, common-user port for other shipping companies. "It must offer fair access and tariffs for rival shipping lines even as MSC, its biggest potential customer, becomes a part-owner."

Reuters reported earlier on Tuesday that Adani Ports and Special Economic Zone said MSC Group would acquire a 49% stake in Vizhinjam port through its unit Terminal Investment. Adani Ports described the transaction as the largest foreign private investment in Indian port infrastructure and said it is subject to regulatory approvals.

According to the report, the partnership is expected to increase cargo traffic and accelerate capacity expansion at the Kerala port. It would also mark Adani Ports' third partnership with MSC after similar ventures at Mundra and Ennore ports.

"Done right, this cements Vizhinjam's future, to Kerala's lasting benefit," Tharoor said, adding that he would continue engaging with both the Kerala government and AVPPL on the matter.