The Kerala government has expressed its displeasure to Adani Ports and Special Economic Zone (APSEZ) Limited for not informing before publicly announcing the sale of 49% stake in Vizhinjam Port to Mediterranean Shipping Corporation (MSC), a statement issued by the Chief Minister’s Office said on Thursday.
“MSC’s investment – acquiring a 49% stake in Adani Vizhinjam Port Private Limited (AVVPL) – was announced without informing or holding consultations with the state government. Chief Minister V D Satheesan conveyed the state’s displeasure over this matter to the APSEZ administration,” the statement said.
This came a day after CM Satheesan told the state assembly that change of ownership of the port concessionaire – AVVPL – could not be done without the approval of the state government which owns the port. The Chief Minister stressed that the state government would consider multiple factors including public interest, fair competition and long-term growth prospects of the port while deciding on the proposal.
Hours after the Prime Minister’s remarks in the House, the APSEZ management submitted the proposal to sell 49% of its stake in the concessionaire to the Secretary, Port Administration and Managing Director, Vizhinjam International Seaport Limited (VISL), the special purpose vehicle set up to monitor the operation of the port, a senior VISL official told HT.
“We received the proposal on Wednesday afternoon. While the national security aspect will be left to the Union government to study, the state government, which owns the port, will consider factors including public interest and ensuring fair competition. We have an empowered committee headed by the chief secretary with secretaries of ports, law and finance and managing director of VISL as members. The committee will examine the pros and cons of the proposal and submit its recommendations to the state,” the senior VISL official said.
“Given that this is a matter that will be decided at a high level, the Council of Ministers will make the final decision on the sale of the concessionaire’s shares,” the official said.
Opposition Leader Pinarayi Vijayan has raised concerns over whether APSEZ’s deal with MSC is the first step towards the sale of Vizhinjam port to a foreign multinational company, against the interests of the state government. He also hinted that APSEZ signed a memorandum of understanding with MSC with the help of “unofficial” approval from the state.
“The state government must clarify what kind of deal has been reached in this matter. Any approach that sacrifices the interests of the state to a private company cannot be accepted,” Vijayan said.
