Thiruvananthapuram: A day after the Adani Group announced a major investment by Switzerland-based Mediterranean Shipping Company (MSC), the world’s largest container shipping company, in Kerala’s Vizhinjam port, Chief Minister V.D. Satheesan said the state government had not been informed about the move.
On Tuesday, the Adani Group announced that it had entered into a definitive agreement under which MSC’s terminal arm, Terminal Investment Ltd (TiL), would acquire a 49 percent stake in Adani Vizhinjam Port Private Limited (AVPPL) for USD 1.397 billion.
The strategic collaboration represents the single largest foreign private investment in Indian port infrastructure and cements Vizhinjam’s emergence as a dominant transshipment gateway in the Indian Ocean region, Adani Group said.
On Wednesday, the issue came up in the Kerala Assembly.
Responding to a question raised by CPI(M) MLA Xavier Chittilappilly, Satheesan informed the House that the government had not been consulted.
“The government has noticed the reports on this. But we haven’t been consulted or approached for permission on this. As per the concession agreement, they can’t transfer the shares without the state government’s approval. In some situations, the Centre’s approval is also needed. They haven’t come seeking approval,” he said.
ThePrint has learnt that while officials of the Vizhinjam International Seaport Ltd (VISL), Kerala government’s Special Purpose Vehicle (SPV) for the project, were aware of the proposed agreement, they did not receive any formal communication from the Adani Group in this regard.
Located in Thiruvananthapuram, Vizhinjam is India’s first mega deep-water container transshipment port. It was inaugurated by PM Narendra Modi in May last year. Built under a Public-Private Partnership (PPP) model, the Adani Group has a 40-year concession to build, operate and maintain the port under the agreement signed with the Kerala government on 17 August, 2015.
The agreement also allows Adani Group to seek a 20-year extension by applying between three and five years before the concession ends.
It also stipulates that any acquisition of 25 percent or more of the equity of the concessionaire (AVPPL), or acquisition of control of its Board, requires prior approval from the Kerala government.
Leader of the Opposition and CPI(M) leader Pinarayi Vijayan raised concerns over the agreement, saying it could reduce competition and create a monopoly.
“Considering Kerala’s public interest, MSC is a shipping company, and when Adani, which is also a port operator, joins hands with it, it will establish a monopoly. At this point, we should think about it. I feel it could be dangerous to Kerala’s port development and trade interests,” the former chief minister said.
Also Read: Why Vizhinjam Port marks new chapter in India’s maritime trade
Kerala as port hub, with Vizhinjam at its heart
The announcement of MSC’s investment into Vizhinjam comes less than a month after the newly elected Congress government in the revised FY 2026-27 Budget announced ‘Mission Samudra’, which aims to transform the state into a port-led economy by leveraging its 600-km coastline and major and non-major ports.
The government also announced that it would accelerate key connectivity projects to the port, including the Balaramapuram-Vizhinjam underground rail corridor and the Vizhinjam-Navaikulam Outer Ring Road.
Located about 10 nautical miles from the busy East-West international shipping route, the port is strategically positioned to handle global container traffic.
Commissioned in December 2024, Vizhinjam port has an annual capacity of 1.6 million Twenty-foot Equivalent Units (TEUs). It is currently undergoing expansion, with capacity expected to increase to 5.7 million TEUs by December 2028.
The port mainly handles container transshipment at present.
According to the Kerala government, the state spent Rs 3,085.52 crore on the project between 2016 and 2026, while the Centre provided Rs 817.80 crore as viability gap funding. Under the original concession agreement, the Adani Group was to invest about Rs 4,089 crore in the first phase of the project.
Satheesan said that while the Kerala government is supporting completion of the second phase, land acquisition for further expansion has been progressing slowly.
“If we don’t acquire land and develop related industries, the neighbouring state is waiting for the opportunity. For the past five years, Tamil Nadu has been trying to become the beneficiary of the port. Unfortunately, our government has been slow in carrying out the development, including acquiring land for port-related industries,” Satheesan said, adding that the Kerala government is studying plans to develop container stations and other out-of-harbour infrastructure.
(Edited by Amrtansh Arora)
Also Read: A tale of two protests in Kerala. And Adani’s Vizhinjam port at the heart of it
This is not License Raj era, to keep asking the govt for permission on everything !