The Kerala government-appointed high-level committee, chaired by the Chief Secretary, has been tasked with examining the advantages and concerns related to the proposed transfer of a 49% stake in Adani Vizhinjam Port Private Limited (AVPPL) and submitting recommendations for a final decision.
Adani Vizhinjam Port Private Limited has informed the government that the proposed 49% stake transfer has not yet taken place and that no such transfer will be carried out without prior approval from the Kerala government. The findings of the Port Department regarding the proposal have now emerged.
The committee reviewed the proposal to transfer 49% equity in AVPPL to MSC/TiL while allowing Adani Ports and Special Economic Zone Limited (APSEZL) to retain its 51% stake.
According to the assessment, even after the proposed stake transfer, the development and operations of Vizhinjam International Seaport are expected to gain further strength through the combined global networks and capabilities of AVPPL and the MSC Group.
The report clarified that MSC will not receive any exclusivity rights at the port, and other shipping companies will continue to have equal access to use Vizhinjam Port.
The MSC Group’s proposed investment in AVPPL is estimated at around $1.75 billion, which could help increase the port’s annual handling capacity from the current 1.6 million TEUs to 5.7 million TEUs.
The committee noted that MSC’s global transshipment network could bring more vessel services and cargo volumes to Vizhinjam, while expanding trade opportunities with markets in Africa, the Middle East and Bangladesh.
The report also highlighted that under Clause 5.3 of the concession agreement, any change in ownership resulting from the 49% stake transfer requires prior approval from the Kerala government.
The committee recommended ensuring non-discriminatory access to all port users, including shipping lines, vessel operators, customs authorities, immigration services, freight forwarders and users of common facilities.
It further stated that port operations must continue in accordance with Clause 5.8.1 of the concession agreement, maintaining competition, public interest and transparency.
The proposed stake transfer will not affect the ownership rights of Kerala government land or alter any other provisions of the concession agreement. All existing terms and conditions will remain applicable.
After reviewing all potential benefits and concerns, the high-level committee will submit its recommendations to help the government take a final decision on the proposed stake transfer.
