4 min readThiruvananthapuramJul 1, 2026 02:23 PM IST
The Kerala government has said it was not consulted about global shipping conglomerate Mediterranean Shipping Company (MSC) acquiring a 49 percent stake in Adani Vizhinjam Ports Private Limited, the concessionaire responsible for building, financing and operating the Vizhinjam International Container Transshipment Port for 40 years under the public-private partnership (PPP) model.
On Tuesday, Adani Ports and Special Economic Zone Limited had announced that the MSC’s terminal wing Terminal Investment Ltd (TiL) had taken 49 percent stake, which is worth Rs 13,000 crore, in the AVPPL. This has been billed as the single largest foreign private investment in Indian port infrastructure.
Chief Minister V D Satheesan Wednesday informed the Assembly that the state government was not informed about the deal. “The Adani Group did not have any communication with the state government. As per the concession agreement, the concessionaire should not effect any change in ownership of the port without prior approval from the authority, which is the state government. Selling 49 per cent stake means there is ownership change, which is not possible without the consent from the state government,” he said.
Satheesan said MSC is not a mere investor and the state government will examine how the investment is going to impact the port operations.
“Since the port is critical infrastructure, national security is a matter of concern. The deal will be allowed only after protecting the interest of the state and safeguarding the public interest. There should be space for fair competition and we have to ensure that the deal does not lead to monopoly of a particular company in the port. There should be a competitive user facility where all stakeholders will be able to do business without any discrimination,” he said.
Opposition leader and CPI(M) politburo member Pinarayi Vijayan also shared the same sentiments. He also flagged that Adani can sell the share in the port only with the consent of the state government. “The news about selling of the share up to 49 per cent is a matter of grave concern. When the shipping firm MSC and Adani group join hands, there is a danger of monopoly. That will be against the commercial interest of the state and port’s development. When one particular firm gains monopoly at the port, all others will have to go by their conditions. This will lead to financial anomalies and eliminate the situation in which the port should grow into a multi-operator venture,’’ said Vijayan.
The Vizhinjam port, India’s first deep water container transshipment port, became operational in July 2024. Its commercial operations began in December that year. The port has emerged as a major destination for the world’s largest container ships. Over 1,000 ships had already been berthed at the port in the last two years.
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The first phase of Rs 8,860-crore transhipment deepwater multipurpose seaport project is being executed by Adani Ports and SEZ Private Limited on a design, build, finance, operate and transfer (DBFOT) model. The project has been debated over decades, tried to be executed in different modes by successive regimes, but in 2015, then Congress government in Kerala inked a deal with Adani Group.
Of the total investment, Adani Group would invest Rs 2,454 crore and another Rs 1,635 crore would be mobilized from the state and central governments as viability gap funding. The Kerala government also gave 500 acres of land. The DBFOT deal is for 40 years, with provisions extending for 20 years.
The state government runs the Vizhinjam International Seaport Limited (VISL), a special-purpose company fully owned by the Government. It acts as the landlord and project owner. Adani Vizhinjam Port Private Limited (AVPPL) is the private concessionaire (a subsidiary of Adani Ports & SEZ) responsible for building, financing, and operating the port.