An MSC vessel arrives at the Vizhinjam International Seaport in Thiruvananthapuram, Kerala. (file image)
| Photo Credit: special arrangement
The Kerala government has initiated the process of examining the proposal by the Adani Group to divest its 49% stake in Adani Vizhinjam Port Private Limited (AVPPL), the concessionaire and operating company of the Vizhinjam International Seaport.
The announcement by Adani Ports and Special Economic Zone Limited (APSEZ) that the Switzerland-based Mediterranean Shipping Company (MSC) Group will acquire a 49% stake in AVPPL has sparked a controversy in Kerala, with Chief Minister V.D. Satheesan claiming that the Adani Group had not communicated its decision to the State government and that the State’s approval is mandatory for such a move.
Following the controversy, the company hurriedly submitted a proposal to this effect on Wednesday (July 1, 2026) night to the Ports Department Secretary and the Managing Director of Vizhinjam International Seaport Limited (VISL), a special purpose vehicle (SPV) wholly owned by the Kerala government and established to implement the country’s first mega deep-water container transshipment port at Vizhinjam.
The proposal has now been forwarded to the Law Department for vetting. After legal scrutiny, it will be examined by a high-power committee headed by the Chief Secretary. Based on the committee’s recommendations, the State Cabinet will decide whether to approve the stake sale.
After obtaining the State government’s approval, the company will have to approach the Central government for the required clearances, including approvals related to foreign investment and security. The final memorandum of understanding (MoU) for the stake sale will be signed only after all the necessary approvals are obtained, according to sources. The company has already signed a preliminary agreement and publicised it after informing the Securities and Exchange Board of India (SEBI).
Pinarayi raises matter in Assembly
The issue turned controversial after Leader of the Opposition Pinarayi Vijayan raised it in the Assembly. According to the Adani Group, under the concession agreement signed between the State government and the company, up to a 74% stake can be divested after one year from the commencement of the port’s commercial operations, and the proposed transaction is in accordance with the agreement. Commercial operations at the port commenced on December 4, 2024.
According to the announcement made by Adani Group on Tuesday, MSC will acquire a 49% stake in the Vizhinjam port company for $1.397 billion (around ₹13,220 crore). MSC will make the investment through its container terminal operating and investment arm, TiL. APSEZ and TiL have entered into an agreement, and the transaction is subject to customary approvals, including regulatory clearances, according to the port company.
Published – July 02, 2026 10:27 am IST
