THIRUVANANTHAPURAM: Clarifying that government approval is mandatory for any transfer of shares in the Vizhinjam International Seaport, Chief Minister VD Satheesan on Wednesday said the Adani Group has not sought the state's permission for the proposed transfer of a 49% stake to Mediterranean Shipping Company (MSC).
The Chief Minister told the Assembly that the government had come to know about reports of MSC acquiring a stake in the Vizhinjam port project for an investment of Rs 13,000 crore only through the media. He said that the state government and in certain matters the Union government's clearance is required.
Referring to the concession agreement governing the project, the Chief Minister said Clause 5(3) stipulates that prior approval of the state government is mandatory for any transfer of shares. Without such approval, the company cannot transfer its shares on its own, and any such move would have no legal validity, he said.
Satheesan said the government has not yet received any official communication regarding the proposed foreign investment or the reported agreement between MSC and Adani Ports.
“No file seeking approval for the share transfer has come before the government so far, we would examine the proposal if and when such a request is submitted,” Satheesan informed the House.
Reports had earlier stated that MSC and Adani Ports had reached an agreement under which MSC's terminal operating arm, Terminal Investment Limited (TIL), would acquire a 49% stake in the VISL project. The overall project is valued at around Rs 27,000 crore.
The investment is to accelerate the expansion of the Vizhinjam port, with a target of increasing its container handling capacity from the current 1.6 million twenty-foot equivalent units (TEUs) to 5.7 million TEUs by December 2028.
TIL is one of the world's largest container terminal operators, managing more than 100 container terminals with an annual cargo handling capacity exceeding 70 million TEUs. Adani Group and MSC are already partners at Mundra Port and Kamarajar Port.
Replying to questions on Vizhinjam in the Assembly, the Chief Minister also said the government would not limit port development to Vizhinjam alone. He assured the House that the modernisation and expansion of Azhikkal and Beypore ports in north Kerala would receive top priority.
He further said the proposed Vizhinjam Port City project and the 'Vision Samudra' initiative announced in the state Budget would provide a major boost to the state’s second-generation development agenda, while ensuring balanced development with special emphasis on the Malabar region.
He also announced that the government considers the concerns of developmental victims with utmost seriousness and it assured that there would be a special package for the rehabilitation.