Kerala Chief Minister V. D. Satheesan expressed dissatisfaction over the Adani Group’s announcement that Mediterranean Shipping Company will invest in Adani Vizhinjam Port Private Limited (AVPPL), the concessionaire and operating company of the Vizhinjam International Seaport.
The Adani Ports and Special Economic Zone Limited (APSEZ) recently announced that a 49% stake in Adani Vizhinjam Port Private Limited (AVPPL) will be acquired by Switzerland-based Mediterranean Shipping Company (MSC). The announcement was made without informing or consulting the state government. The state government has conveyed its dissatisfaction to the Adani Ports and Special Economic Zone Limited (APSEZ) management in this regard, the Chief Minister’s Office said on Thursday in a press release.
Satheesan stated in the Assembly on Wednesday that this stake sale violates the original tripartite concession agreement, which mandates prior state government approval for such ownership changes. During the question hour in the Assembly, he said the state government is a stakeholder in the project and any major investment or change in partnership would require the state’s approval. He clarified that the Adani group has neither held official discussions with the state government nor sought its approval for any such move.
On Wednesday, Adani Ports and Special Economic Zone reportedly informed the government about the proposal to transfer a 49 percent stake to MSC. The Adani group has reportedly informed the Kerala government that selling a stake in the Vizhinjam Seaport is a strategic partnership with the MSC Group.
The proposal to sell a stake in the Adani Group’s Vizhinjam Seaport has reportedly been forwarded to the State Law Department for legal vetting. Following this legal scrutiny, a high-level committee led by the Chief Secretary will review the plan. The committee will then present its recommendations to the State Cabinet for a final decision.
According to sources, the deal needs the Kerala government’s clearance under the concession agreement since the buyer’s stake will exceed 25%. While Adani Vizhinjam Port Pvt Ltd (AVPPL) became eligible to sell up to 74% of its equity after completing one year of operations in December 2025, it currently intends to sell only 49%.