Thiruvananthapuram: The Kerala government has clarified that the proposed partnership between Adani Ports and the Mediterranean Shipping Company at the Vizhinjam International Seaport cannot move forward without the state's prior approval. The clarification came after reports emerged that Adani Ports had agreed to sell a 49 percent stake in the Vizhinjam port project to Terminal Investment Limited, the port operating arm of the Switzerland based Mediterranean Shipping Company, commonly known as MSC.
Speaking in the Kerala Legislative Assembly on Tuesday, Chief Minister V D Satheesan said the government had learned about the proposed transaction through media reports and had not yet received any official request from Adani Ports seeking approval. He explained that under the concession agreement signed for the development of Vizhinjam Port, any transfer of shares requires prior approval from the Kerala government. Depending on the nature of the transaction, approval from the Central Government may also be needed before the deal can be completed.
The Chief Minister said the state would examine the proposal only after receiving a formal application from the company. He added that the legal and contractual provisions governing the project would be followed before any decision is taken.
The proposed investment was announced by Adani Ports and Special Economic Zone on June 30. According to the company, Terminal Investment Limited will acquire a 49 percent stake in Adani Vizhinjam Port Private Limited in a deal valued at about 1.397 billion US dollars. The transaction values the entire Vizhinjam port project at around 2.85 billion US dollars, making it one of the largest foreign investments in India's port sector.
Adani Ports described the agreement as a strategic partnership that will strengthen Vizhinjam's position as a major international transshipment hub. The company said the partnership with MSC is expected to increase cargo volumes, improve global shipping connectivity and support the next phase of the port's expansion.
MSC is the world's largest container shipping company and operates more than one hundred container terminals across the world through its subsidiary Terminal Investment Limited. Industry experts believe the company's involvement could attract more international shipping services to Vizhinjam and help India reduce its dependence on foreign ports such as Colombo, Singapore and Dubai for transshipment of cargo.
The Vizhinjam International Seaport is considered one of India's most important infrastructure projects. Located near one of the world's busiest international shipping routes, the deep water port has been designed to handle some of the largest container vessels in operation today. Commercial operations at the port began recently, and cargo volumes have grown rapidly. Adani Ports has stated that the terminal handled more than two million twenty foot equivalent units within just eighteen months of operations, highlighting its growing importance in global maritime trade.
The announcement of the proposed stake sale has also sparked political discussion in Kerala. Opposition members in the Assembly sought clarification from the government regarding its role in the approval process. In response, the Chief Minister stressed that the issue was not about opposing investment but about ensuring that all contractual and legal procedures are properly followed.
Officials have pointed out that the agreement announced by Adani Ports is only a commercial understanding between the parties and does not automatically complete the transfer of ownership. The transaction remains subject to several conditions, including regulatory clearances and government approvals.
The proposed partnership also reflects the growing confidence of global investors in India's port infrastructure. Analysts believe that the combination of Adani Ports' experience in developing port facilities and MSC's extensive global shipping network could significantly enhance Vizhinjam's role as a gateway for international trade once all approvals are secured.
For now, however, the Kerala government has made its position clear. Until Adani Ports formally approaches the state and the required approvals are granted under the concession agreement and applicable regulations, the proposed transfer of shares cannot be finalised. The coming weeks are expected to determine how quickly the approval process moves forward and whether the landmark investment receives the necessary clearances to proceed.