Kerala Chief Minister VD Satheesan | Photo Credit: -

Kerala Chief Minister VD Satheesan on Wednesday made it clear that State government approval is required for the share transfer deal in which Mediterranean Shipping Company (MSC) proposes to acquire a 49 per cent stake in the Adani Vizhinjam Port, concessionaire and operating company for the Vizhinjam International Seaport. 

Replying to a question during Question Hour on Wednesday, the Chief Minister informed the State Assembly House that Adani Ports has not obtained approval for the share transfer. Satheesan said he came to know about the proposed deal through media reports.

APSEZ, TiL agreement

A corporate announcement made by Adani Ports and Special Economic Zone (APSEZ) on Tuesday said MSC will acquire a 49 per cent stake in the Vizhinjam port company for $1.397 billion (around ₹13,220 crore). The investment will be routed through MSC’s container terminal operating and investing arm, TiL. APSEZ and TiL have entered into an agreement and the transaction is subject to customary approvals, including regulatory ones. 

Clause 5(3) of the concession agreement governing the Vizhinjam project stipulates prior approval of the State government is mandatory for any transfer of shares, the Chief Minister said. Without such approval, the company cannot transfer its shares on its own, and any such move would have no legal validity, he said.

Container handling capacity

“No file seeking approval for the share transfer has come before the government so far. “We would examine the proposal if and when such a request is submitted,” Satheesan said. The investment aims to raise the container handling capacity from 1.6 million twenty-foot equivalent units (TEUs) to 5.7 million TEUs by December 2028.

TIL is one of the world’s largest container terminal operators, managing more than 100 container terminals with an annual cargo handling capacity exceeding 70 million TEUs. Adani Group and MSC are already partners at Mundra Port and Kamarajar Port.

Port City project

The Chief Minister also said the government would not limit port development to Vizhinjam alone. Modernisation and expansion of Azhikkal and Beypore ports in north Kerala, too, would receive top priority. The proposed Vizhinjam Port City project and the ‘Vision Samudra’ initiative announced in the state Budget would provide a major boost to the state’s second-generation development agenda, while ensuring balanced development with special emphasis on the Malabar region, Satheesan added. 

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Published on July 1, 2026