Vizhinjam Port: Adani makes crucial move, submits letter to govt seeking approval for share transfer

THIRUVANANTHAPURAM: Adani Group has submitted a letter to the Kerala government seeking approval for a proposed share transfer related to Vizhinjam Port. The letter was sent to the Chief Minister's Office and to the Managing Director of VISL (Vizhinjam International Seaport Ltd.).

Reports had earlier stated that Adani Ports and Special Economic Zone Limited, which operates the Vizhinjam International Seaport, had decided to transfer 49% of its shares to Swiss shipping company Mediterranean Shipping Company (MSC). However, the company had not approached the government for the required approval at that time. Following this, Adani Ports has now submitted a request seeking permission.

Chief Minister V.D. Satheesan had earlier clarified in the Legislative Assembly that ownership rights of Vizhinjam Port cannot be transferred without prior approval from the state government. According to Clause 5(3) of the agreement with Adani, ownership cannot be changed without the government's prior consent.

Under the Companies Act, a transfer of more than 25% of shares can result in a change in ownership. Since ports are strategic assets linked to national security and public interest, approvals from the Union Home Ministry and the Ministry of Shipping may also be required.

The Chief Minister said that any approval for the share sale would be granted only after ensuring factors such as competitiveness, investment attraction, future development prospects, and the state's revenue interests. He also stressed that facilities within and around the port should be available to other companies without discrimination and that no single company should enjoy a monopoly.

The Chief Minister added that the government would examine how MSC, the world's largest container shipping company, plans to use the Vizhinjam Port and its facilities before making a decision.