CPM strongly opposes contentious Adani-MSC stake deal at Vizhinjam Seaport

The equity transfer of the Vizhinjam seaport between Adani and Mediterranean Shipping Company (MSC) has drawn sharp criticism and strong objections from the CPM.

CPM Kerala secretary M V Govindan alleged on Sunday that Chief Minister V D Satheesan orchestrated a major deal with Adani and Switzerland-based Mediterranean Shipping Company (MSC) Company regarding the Vizhinjam port project, claiming its benefits extend to the Chief Minister.

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Speaking to the media here on Sunday, Govindan said the stake transfer is illegal because it violates concession agreement terms requiring state approval for any equity transfer exceeding 25%. Claiming that MSC’s ultimate objective is a complete takeover of the Vizhinjam project, he demanded the immediate cancellation of the contract.
Demanding accountability from the national leadership, Govindan stated that Congress leader Rahul Gandhi must clarify his stance on the controversial agreement.

Leader of the Opposition in the Kerala assembly Pinarayi Vijayan previously condemned the Vizhinjam share transfer as illegal. He noted that the project agreement strictly requires prior state government approval for any transfer exceeding 25 per cent of shares. Wondering whether the move occurred with the government’s knowledge, Vijayan pointed out that the deal was finalized on June 29.

He demanded that the Chief Minister clarify what legal actions the government intends to take regarding this breach of contract. Furthermore, he dismissed claims of massive foreign investments as a mere propaganda, alleging that the share transfer was orchestrated solely to generate profits for the Adani Group.

Meanwhile, the Adani group clarified that the share transaction will occur only after receiving all necessary approvals, including a nod from the state government. The share transfer process will begin only after receiving all official approvals, including prior permission from the Kerala government, the Adani group said.
This explanation comes as the state government expressed dissatisfaction over the transfer of shares of Adani Vizhinjam Port Private Limited (AVVPL) and the opposition used the issue as a political weapon.

Referring to the concerns over one shipping line getting monopoly, Adani Ports said the Vizhinjam port will remain an open access port for all shipping lines and that MSC will not have any exclusivity.

Aswani Gupta, CEO of Adani Ports and Special Economic Zone Limited (APSEZ), has clarified that there is no immediate change in the shareholding structure of AVPPL. Referring to the allegation that the state government was not informed of the deal before filing it with SEBI, the officials clarified that the transaction was disclosed in accordance with the SEBI regulations governing listed entities.