Kerala to Review Adani-MSC Vizhinjam Port Deal Before Granting Approval

The Kerala government has said it will closely examine Adani Ports and Special Economic Zone’s (APSEZ) proposed sale of a 49% stake in Vizhinjam International Seaport to Switzerland-based Mediterranean Shipping Company (MSC), stressing that no change in ownership can take place without the state’s prior approval. Chief Minister V. D. Satheesan informed the Assembly that the government learned about the transaction through media reports and had not received any official communication from APSEZ. The deal, valued at $2.85 billion, is being described as the largest foreign private investment in India’s port infrastructure.

Citing the concession agreement governing the port, the Chief Minister said any transfer of more than 25% equity amounts to a change in ownership and therefore requires approval from the Kerala government. He added that the proposal would be evaluated on five key factors—national security, public interest, fair competition, investment, and the port’s long-term development. Since Vizhinjam is considered a strategic asset, approvals from the Union Ministry of Shipping and the Union Ministry of Home Affairs will also be necessary.

The government and opposition leaders have raised concerns that MSC’s dual role as both a leading global shipping company and a prospective part-owner of the port could create a monopoly and affect fair access for competing shipping lines. They emphasized that Vizhinjam must remain a common-user port with non-discriminatory access for all stakeholders. Congress MP Shashi Tharoor welcomed the investment as a boost for the port’s expansion but also called for thorough scrutiny to ensure competition, transparency, and Kerala’s long-term interests are protected.

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