Kerala Govt Examining Adani Group’s Proposed 49% Stake Sale in Vizhinjam Port

Kerala Chief Minister V D Satheesan has said that Adani Group did not attempt to transfer its 49 per cent stake in Vizhinjam International Port without prior approval from the state government, adding that the proposed transaction is under examination.

In a recent reply to an unstarred question in the Assembly, Satheesan said Adani Vizhinjam Port Private Limited (AVPPL), the company operating the port, had submitted an application seeking approval for the proposed transfer of its existing 49 per cent shareholding.

Under the concession agreement, any change in the ownership of the concessionaire through a share transfer requires prior approval from the state government, which is the concessioning authority.

An empowered committee headed by the Chief Secretary is examining the proposed transaction, the documents submitted and other relevant provisions of the agreement. Further action will be taken based on the committee's recommendations and report, Satheesan said.

The clarification comes amid a proposed sale of the stake to Switzerland-based Mediterranean Shipping Company (MSC), the world's largest shipping and logistics group. In June 2026, Adani Ports and Special Economic Zone (APSEZ) announced that MSC would acquire the 49 per cent stake for approximately USD 1.4 billion, triggering a political controversy in Kerala.

On July 1, Satheesan had told the Assembly that the government learnt about the proposed transaction through media reports and had not received formal communication from APSEZ at that time. He had also stressed that the ownership of the port concessionaire could not be changed without prior state approval.

Construction of Vizhinjam International Port began on December 5, 2015, during the Oommen Chandy government. The first phase was completed, and the port commenced commercial operations on December 3, 2024.

The expansion under Phases II, III and IV must be completed by December 31, 2028, under agreements signed in 2024. Environmental clearance was obtained in March 2025, and expansion work began in September that year. Physical progress stood at 12.4 per cent as of August 2026, with breakwater extension, dredging, reclamation and container berth construction progressing simultaneously.