Kerala govt expresses displeasure to Adani Ports over Vizhinjam port deal with MSC

THe Kerala authorities has verbalized its displeasure to Adani Ports and Special economical district (APSEZ) modified for not informing it before publicly announcing the sale of a 49% stake in the Vizhinjam port to Mediterranean Shipping Company (MSC), a statement from the chief minister’s office said on Thursday.“The announcement regarding the MSC’s investment — securing a 49% equity stake in Adani Vizhinjam Port Private Limited (AVVPL) — was made without informing or holding consultations with the State government. Chief Minister VD Satheesan conveyed the State’s displeasure in this matter to the management of APSEZ,” the statement said.It came a day after CM Satheesan informed the state assembly that the change of ownership of the port concessionaire — AVVPL — cannot be made without the consent of the State government, which owns the port. The CM had stressed that the State government would examine multiple factors including public interest, fair competition, and long-term growth prospects of the port while deciding on the proposal.Hours after the CM’s remarks in the House, the management of APSEZ submitted the proposal regarding the divesting of 49% of its stake in the concessionaire to the secretary of the ports department and the managing director of Vizhinjam International Seaport Limited (VISL), the special-purpose vehicle established to monitor the operation of the port, a top VISL official told HT.“We received the proposal on Wednesday afternoon. While the aspect of national security will be left to the Union government to examine, the State government, which owns the port, will look at factors including public interest and ensuring fair competition. We have an empowered committee headed by the chief secretary with secretaries of ports, law, finance and the managing director of VISL as members. The committee will examine the pros and cons of the proposal and give its recommendations to the State,” said the top official of VISL.“Considering this as a matter to be decided at a high level, the Cabinet will take the final call on the sale of shares of the concessionaire,” the official said.Opposition Leader Pinarayi Vijayan raised concerns about whether the APSEZ deal with MSC was the first step towards the sale of the Vizhinjam port to a foreign multinational firm, contrary to the interests of the State government. He also hinted that APSEZ signed the MoU with MSC with the help of an “informal” consent from the State.“The State government must clarify what kind of deal was struck in this matter. Any approach that sacrifices the State’s interests to a private company cannot be accepted,” said Vijayan.